LAND

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 8:30 a.m. ET Chief Executive Officer - David Gladstone Director of Investor Relations - Catherine Gerkis Executive Vice President - William Reiman Chief Financial Officer - Lewis Parrish Operator: Greetings, and welcome to the Gladstone Land Corporation Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. David Gladstone, Chief Executive Officer. Please go ahead, sir. David Gladstone: Well, thank you, Melissa, for that nice introduction. This is David Gladstone, and this is the quarterly call for Gladstone Land. And thank you all for calling in today. We appreciate you taking time out of your busy day to listen to our presentation and get some updates from us. First, we'll hear from Catherine Gerkis, she is our Director of Investor Relations, to provide a brief disclosure regarding certain regulatory matters concerning this call. Catherine, go ahead. Catherine Gerkis: Thank you, David, and good morning, all. Today's call may include forward-looking statements, which are based on management's estimates, assumptions and projections. There are no guarantees of future performance, and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filings, which you can find on the Investors page of our website, gladstoneland.com. We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our Form 10-Q and earnings press release, both issued yesterday for more detailed information. You can also sign up for our e-mail notification service and find information on how to contact our Investor Relations department. We are also on X at Gladstone Comp as well as Facebook and LinkedIn, keyword for both is the Gladstone Company. Today, we'll discuss FFO, which is funds from operations, a non-GAAP accounting term defined as net income, excluding gains or losses from the sale of real estate and any impairment losses on property plus depreciation and amortization of real estate assets. We may also discuss core FFO, which we generally define as FFO adjusted for certain nonrecurring revenues and expenses and adjusted FFO, which further adjusts core FFO for certain noncash items, such as converting GAAP rents to normalized cash rents. We believe these metrics can be a better indication of our operating results and allow better comparability of our period-over-period performance. Now I'll turn it back to David Gladstone. David Gladstone: All right. Thank you. Let me just talk about the portfolio we have. We currently own about 98,000 acres across 142 farms and about 56,000 acre feet of water, which is about 18 billion gallons. Our farms are in 14 different states and our water assets are all in California. We didn't have any acquisitions or dispositions this active quarter. But quarter end, we sold a property consisting of 2 citrus farms in Florida for about $3 million. It was a small amount of acreage. The original tenant had defaulted on the lease and the replacement tenant was at a substantially lower rental rate. And given the continued weakness of the citrus markets, we felt it was best to sell the property and use the proceeds to pay off some related mortgages or some other assets that we want to do something with. We may consider selling some additional farms over the next few quarters as part of our ongoing portfolio review. If we use most of the proceeds to pay down debt and buy back preferred stock, it will be very strong for us. We continue to take a disciplined approach to the acquisitions and staying active in the market, so we're ready when the conditions improve. And it makes sense for us to start growing the portfolio again. And that will be when interest rates have gone down. So anything you can do talking to the Fed and telling them to lower that rate, we'll be pleased to do some more transactions. As we've discussed in all of our prior calls, I think, forever now, due to the market permanent crops, particularly nuts and wine grapes, we modified the lease structure there so that a handful of farms to reduce the grower's fixed cost while allowing us to participate more in the upside with higher crop share participation. So we are becoming much more involved in the operations. Overall, the 2025 almond and pistachio harvest were very strong with yields generally exceeding expectations. While the final pricing of the pistachio crop has not yet been determined, believe that, it just takes forever to get all these things done. We received indications from certain processes that our final price is expected to be higher than the prior year. So we expect to recognize a meaningful amount of additional revenues from that harvest in the fourth quarter of this year. We entered into similar arrangements for most of these farms for 2026 crop. So we're continuing down the same path that we set up to get us through all of that past problems. Majority of the related revenues and earnings again being recognized during the fourth quarter. So you'll hear from our accounting staff about how much we've got of that later. And I also want to remind everyone that the crop insurance continues to play an important role here as it helps to limit the downside risk on the farms, particularly given their strong production history. If we could be a big year and then have some problems insurance always protects us from the big downside. Our goal is still eventually transition these farms that we're doing on a shared basis back to more traditional lease structures with fixed base rent. But the time of that will depend on several factors, such as crop production, pricing, interest rates, input costs and most importantly, water availability, we're finding some problems out there with the water availability. Looking ahead, we have 6 leases scheduled to expire over the next 6 months. In total, these leases are about 3.5% of our leasing revenue for the year ending 2026. We're currently in discussions with both existing and prospective tenants that we expect to be able to renew each of the leases prior to the expiration. We're also pursuing several alternative revenue opportunities, including water leases. We've got farms that have water, and we can lease that out. And following the programs and some of the solar things that have been talking about in 4 of our tenants, we've received some cash rent payments from a couple of these tenants during the quarter. But we'll keep them on nonaccrual status until we see a consistent pattern of timely payments. We'll stop here and turn it over to our Executive Vice President, Bill Reiman. He's out in California. Is that where you are today, Bill? William Reiman: Yes. Actually in Idaho today, David. Thank you. As David said, the second quarter really is highlighted by really strong demand in almond and pistachio markets. We've seen almost weekly price increases in almonds and really strong bumps in pistachio grower pricing. We also reported last quarter about early marketing bonus that was announced in February. We received that in April. So yes, and I also read that just yesterday that these are the strongest almond prices we've had in 10 years. Haven't done that research myself, but those trends are really good. This upward trend in crop prices, coupled with really a largely uneventful quarter as far as weather and growing conditions are concerned, has kept our budget projections on track to outperform the 2025 crop year and tracking really well for 2026. Our primary pistachio processor recently announced an expected final pricing for 2025 crop of at least $2.70 a pound per split in-shell, certainly is higher than we have projected all year. They also announced initial pricing for 2026 of $2.50 a pound per split in-shell, which is 2/3 higher than it was for last year. So these are significant gold price increases that will have a major impact on all of our properties under modified lease arrangements, ones we operate directly and even our crop share lease agreements. We began shaking almonds on July 28. So harvest season is here. The almond crop in our properties looks slightly larger than last year's crop. So we expect at least the same yields, maybe a little bit better. Reports across the state are saying yields in general are slightly lower, which is one of the factors supporting these price increases. Pistachio ordered everywhere extremely light like we reported last quarter. We believe the overall industry was a little overly optimistic initially, but because we were projecting a much lower crop than many of our neighbors. But in the last 30 days or so, that reality has settled in. And that in turn has caused buyers to bump up offers for new crop to levels that are way above last year. Crop expenses continue to track within our original budgets. There's been a lot of discussion in marketing circles about how to handle such a down year without jeopardizing what's likely to be a very strong production year in 2027. We feel our processors are positioned in the industry to maintain pricing so that 2027 will be 2025, even if we have a barn door busting crop yield. Wine grape market really hasn't changed a lot. The 2026 crop is early, harvest has started all over the West. So we expect that '26 crop to be down and not just because of removals, just the crop looks light. It's an encouraging sign and couple that with bulk wine inventories finally getting closer to manageable levels. We hope to see better demand for new crop this year and in the next couple of seasons. So we may be finally -- we may finally be at a place where the industry is on the backside of the oversupply situation. In real estate markets, we talked last quarter, we think in the Western U.S., we think most real estate markets have bottomed out and are starting to get stronger again, are seeing a strong divergence in valuations around water cost and availability. So properties with good cash flow potential are also getting strong attention. Coastal California values remain flat with higher than normal inventory. Pacific Northwest is stable with really good properties transacting swiftly. I'd say values and rents are stable. Stable interest rates, combined with profitable crop price and tree nuts is resulting in a little more lending activity. We're seeing growers a little bit easier getting lines of credit, appears these banks have money to lend. There's a clear path to cover debt payments, financing deals can get done. And I'll end my portion on water. Winter was a little disappointing, particularly from a snowpack perspective and federal water allocations were really disappointing. We did get an additional 3% bump in allocation yesterday, which doesn't sound like a lot, but it helps not only free up a little bit of water, but lowers the pricing in some of our water deals that we have in place. We're finding decent purchase opportunities, but we remain diligent and conservative with what we go after. Our goal is to only acquire water at a price that fits into the economics of a particular crop in a particular area. Look at the long-term forecast, weather forecast, I think everybody sees it in the newspapers and online, a very strong El Nino situation coming this winter. So we're making preparations for a long water situation for next -- this upcoming winter. So there should be some really good opportunities for water acquisitions and beyond just acquisitions, flood flows, that's kind of what we're keeping an eye on being able -- being prepared to take on excess water during storming periods. So the team continues to evaluate all these opportunities and the goal continues to be to strengthen the overall water security of the portfolio, both through long-term, short-term strategic water purchases and continue to invest in water delivery, storage infrastructure and identifying opportunities to create synergies across our farm assets. That's it for me, and I'll turn it over to our CFO, Lewis Parrish. Lewis Parrish: All right. Thank you, Bill. Good morning, everyone. I'll start with a brief update on some recent financing activity. We did not secure any new borrowings or repay any loans during the quarter. However, after quarter end, we repaid a $3 million mortgage loan in connection with the property sale that David mentioned earlier. In addition, during the quarter, we added several unencumbered properties to certain existing and new credit facilities that increased our immediately available capital by about $50 million. We issued about $14 million of common stock under the ATM program earlier in the quarter at an average cost of capital of about 5.5%. Those proceeds were used to repay our line of credit and fund preferred stock repurchases. We have not issued any additional shares since April, given where the stock has been trading. Also since April 1, we've repurchased $13 million of preferred stock at an average repurchase yield of 7.2%, resulting in a total gain of about $1.1 million over that time. Turning to our operating results. For the second quarter, we reported a net loss of about $8.5 million and a net loss to common shareholders of $13.5 million or $0.32 per share. Adjusted FFO for the second quarter was negative $1.6 million or negative $0.04 per share compared to negative $3.5 million or negative $0.10 per share in the same quarter last year. The improvement in AFFO was primarily driven by higher operating cash revenue and lower interest costs, partially offset by higher property operating expenses. Year-over-year fixed base cash rents increased by about $900,000 and it was driven by rent that we collected from certain tenants that remain on nonaccrual status as well as leases executed over the past year. These increases were partially offset by the lost revenue from farms that were sold over the past year. Participation rents increased slightly, primarily due to higher almond prices for the 2025 crop. Direct farming operations generated a net profit of about $590,000 during the quarter, primarily driven by the harvest and sale of an orange crop on a Florida farm following the early termination of a prior tenant's lease as well as higher almond prices. On the expense side, our recurring cash operating expenses increased by about $560,000. Total related party fees increased primarily due to a higher administration fee and the increase in property operating expenses was largely driven by higher professional fees associated with protecting water rights on certain farms in California and also additional costs related to properties that were vacant, directly operated or on nonaccrual status. And G&A expenses increased primarily due to higher stock-related expenses and increased professional fees. And finally, cash flows from operations increased largely as a result of higher cash receipts from participation rates and crop sales, a decrease in cash allowances paid to certain tenants and lower interest payments. Turning to liquidity. We currently have about $125 million of immediately available capital, and we also have about $110 million of unpledged properties that could be used as additional collateral. Over 95% of our borrowings are currently at fixed rates with a weighted average interest rate of 3.45% locked in for an average of another 2.3 years. Looking at upcoming debt maturities, we have roughly $33 million of loans maturing over the next 12 months. Given the value of the underlying collateral, we do not anticipate any issue refinancing these loans should we choose to do so. In addition, we had $17 million of scheduled principal amortization payments over that time, representing less than 4% of our total debt outstanding. We also have about $148 million of loans with fixed rate terms that are scheduled to reset over the next year, though the loans themselves are not maturing. This includes about $130 million of loans under our MetLife facility that are scheduled to reprice in January of 2027. We are actively evaluating all of our options with respect to these loans ahead of the scheduled resets. Finally, regarding the common distributions in July, we declared a monthly dividend of $0.0467 per share for the third quarter of 2026, keeping the dividend flat. At current stock price of $8.21, a 6.8% annualized yield, which is well above the REIT sector average. With that, I'll turn it back over to David. David Gladstone: Well, thank you, Lewis. Overall, demand for prime farmland growing berries and vegetables remains stable across most of the regions, particularly along the coast of California. We're also starting to see some signs of improvement in certain permanent crops, both the pricing and the broader economics around those crops. So we are very hopeful that the worst is over and behind us, but it's still too early to say that we are fully in the clear. In closing, over the long run, we expect inflation, particularly in food sectors that we're in to continue to move higher, and we expect the values of the underlying farmland to increase over time as a result. And we expect this especially to be true with regard to healthy foods such as fresh fruits and vegetables and nuts, and long-term trends toward healthier eating habits continue to grow. Now I'll open up for questions. Operator, would you come on and please direct us? Operator: [Operator Instructions] Our first question comes from the line of Gaurav Mehta with Alliance Global Partners. Gaurav Mehta: I wanted to ask you on the participation rents. If you could provide some color on how much participation rents are you expecting in the second half of this year? David Gladstone: I don't think we're prepared to give a final number yet just because the pistachio pricing is still in flux, the bonus for the '25 crop. We do have a pretty good handle. We know what the initial pricing for the '26 crop is, but yields are still unknown at this point. But I'll let Bill comment on this more. But given where we think we see yields and given higher pricing, we are expecting higher amounts this year, but I don't think we're prepared to give a final range of what that number is going to be. But Bill, anything you want to add to it as far as what yields are looking like? William Reiman: Yes. I would just say it's so early. Of course, we're starting almonds, like I mentioned, but it's -- we're literally just less than 2 weeks in. So it's just too early to have a lot of confidence in any trends we see so far. So far, so good, but there's a long way to go. And then pistachios, we probably aren't going to start anything until closer to the 1st of September. So yes, just way too early on the crop yield side to give any decent guidance there. But pricing is so much stronger than a year ago. So we feel that those things are pushing us towards the positive. Gaurav Mehta: Second question on the -- second question, a follow-up on the second quarter fixed revenues. Were there any nonrecurring onetime items in the revenue number for the second quarter? Lewis Parrish: There was one item that we received some cash payment from a tenant who we placed on nonaccrual status last quarter, Q1 of '26. We did receive a cash payment from them this quarter. I think for the quarterly revenue, that was about $700,000. We would like for that to be recurring. But given that we're keeping that same on nonaccrual status, I wouldn't bake it in as a recurring payment at this time. Gaurav Mehta: All right. And the last question, can you provide some details on the impairment charge you recognized on 4 farms in Arizona? David Gladstone: Yes. That was one property that property has -- consists of 4 different farms down in Arizona, we signed a PSA with a buyer subsequent to -- well, subsequent to quarter end. So we marked it down to the purchase price -- sale price per that agreement. That transaction has not closed, but we are expecting it to close hopefully in late Q3, possibly early Q4 at this point. Operator: Our next question comes from the line of Craig Kucera with Lucid Capital Markets. Craig Kucera: I want to walk through the pistachio market update. I appreciate the additional color. I think last quarter, we were discussing how you received about $0.50 a pound in your first quarter marketing bonus. I thought it might be anywhere from an additional $0.40 to $0.90. Based on this update, it looks like you may be expecting towards the high end of that range, like an additional dollar per pound this year. William Reiman: I would definitely say it's on the upper end of that range. Lewis Parrish: Craig, just to add to that, just based on what the processor said, they didn't kind of commit -- would necessarily commit to it, but with the expectation being at least $2.70, that would imply an additional bonus of at least $0.70 per pound. Read into that "at least part" what you will, but that does have us thinking that it's going to be on the higher end of that range that we gave. Craig Kucera: Got it. Okay. And I guess just mechanically, how should we think -- you're starting here at $2.50, which is up 2/3 from last year. How should we think about the timing of when that's recognized? Like should we think maybe 1/3 this year and then 2/3 next year? Or how should we think about that? Lewis Parrish: Well I think a lot of it is going to play into the -- a lot of it is going to depend on the yield. But just speaking from a pricing standpoint, that $2.50 is the initial guaranteed price. So we will get $2.50 per pound that gets delivered to the processor. The bonus on top of that, which could be $1, could be more, that will be recognized in 2027 of Q4. Now the yield piece of that equation is what's not known yet. Again, I won't -- I'll let Bill comment further, but this is an off year for pistachios, couple that with the weather event, the yields are expected to be down from last year. Is it going to be fully offset by the large increase in pricing? That's kind of TBD at this point. Bill, any further from your side on that? William Reiman: Yes. I mean, yields, obviously, we haven't started yet, but it is a down year. The fruit on the trees is kind of a mess. There's blanking -- you start with a down year to begin with and naturally down year. And then you have this heat spell in March that messed up pollination. So you had a lot of crop drop and the crop is hanging in the trees, a lot of blanks, a lot of issues, small sizes. We're seeing that in almonds as well, and that's across the border, small sizes. So that puts downward pressure on yield. So it's just -- this year is just a bit of a wildcard on crop yield. But we'll know by mid -- it should be in by mid-November on pistachios. And so we'll know what that -- our total production is going to be. And like Lewis said, multiply that by the $2.50, and that's this year's pistachio revenue, plus any blocks that we have in crop insurance claims on which we've already opened some crop insurance claims because we know we have some blocks that we know we're going to be under our crop insurance breakpoint. So it's a little bit hard to forecast at this point in time crop yield and how the crop insurance is going to get paid out. Operator: [Operator Instructions] Our next question comes from the line of John Massocca with B. Riley Securities. John Massocca: So maybe starting with the vacant assets you still have today, any update on potential resolutions for those 10 farms? Lewis Parrish: Yes. Quite the majority of the acreage, we think we are close on getting some alternative leases in place, as David mentioned, solar leases, maybe some cattle leases on couples some of that following programs. We do think we'll have some of those executed before the end of Q3. Others, we're looking at -- we're still talking with new tenants, hoping to get somebody on. Bill, any more progress that you want to note on some of these alternative leases that we're working on? William Reiman: Yes. I mean everything just seems to move slower these days, but we have activity on virtually all of them of getting something in place. In some cases, the deal is already made and we know what we're going to receive and when we receive it. We just don't have the contracts completed. So there's minutia there that we're dealing with. But yes, I would say, in most cases, we're getting there. I would also note that most of the acreage that's been vacant recently the reason for that was a transition. A lot of -- we pulled a lot of almond trees out, and those are properties that are classified as vacant. But just -- it took a long time to get the trees out, took a long time to get those properties cleaned up. And then at the same time, working on what is next for those has been going on. So I don't think that is -- I just think it's important to note that there was sort of a -- the timing here is -- didn't stretch out primarily because of that transition that we had to go through. John Massocca: And just maybe kind of rough brackets, any potential ballpark on what the NOI contribution could be from those vacancies being resolved? William Reiman: Well, some of -- we could get close to their historical performance. Lewis Parrish: From the 3 that we think we're closest on that, we think that could be an annual add of about $1.5 million. John Massocca: Okay. And then in terms of upcoming lease expirations, any color you can provide on how discussions are going with existing tenants, new tenants, just outlook for those properties as those leases roll? Lewis Parrish: Just looking at the next, I guess, the next 6 months out, they're pretty standard leases we expect to probably renew with each of the existing tenants at similar terms. The rent from these expirations over the next 6 months that makes -- they make up about 3.5% of our current annualized rent. So we would expect those numbers to stay pretty flat. John Massocca: Anything to maybe be aware of going forward that could cause kind of oscillations in property operating expenses? You mentioned water. I know some of your leases have kind of water contribution agreements. I don't know if that could be kind of a variable given we might be in a bit of an interesting patch in terms of water availability between now and El Nino. But just kind of curious how to think about that operating expense line item going forward. Lewis Parrish: So there is one -- I'm sorry, go ahead, Bill. William Reiman: No, go ahead. I was just going to say that with this -- with yesterday's announcement on federal water allocations, and I touched on it that it was a 3% increase. And without getting too complex in how water is priced, there's a published tiered system on water pricing. And by increasing allocation by 3%, it bumped us into the next category or bumped down to the next category in terms of pricing. So the domino effect is that pricing and valuation of supplemental excess water for now until the next water year starts, all goes down, right? So I would say maybe even last quarter, we were feeling like, maybe water pricing as we get towards the end of the year is going to be up and that might cost us a little bit more money to finish out the year. Now we're looking at the opposite where that feels like it's going to -- that water -- that pressure -- upward pressure on water expense is actually going to be reversed. So just that little move is going to have a -- could have a big impact for us. And then we see more water becoming available here as we get towards the end of the season. One of the things that happens, the state has been a little more aggressive than the Feds, but they've been pretty conservative with releasing water out of reservoirs. So reservoirs are above average for their historical levels. And then with the threat of a wet season coming, they need to make room. So different owners of different water are going to be looking to sell stuff. And as we get closer to winter, those prices go down. So we feel like water as an operating expense, there's some downward pressure here as we head into winter. Lewis Parrish: And John, just to add a little bit more color as far as how that impacts the financial statement line items. There is one property where we are responsible for bringing a portion of the water to the property. I think in Q -- we usually recognize the cost of that water usage 1 quarter in a arrears. And that's just because it takes time for the final numbers and costs to get processed through the water district and made known to us. So I think in Q1, we recognized about $200,000 of that water cost, and that's water that was actually used in Q4. Most of this water is probably going to get used in the second half of the year. So I would expect maybe a slight uptick in Q4, recognizing water that was used in Q3 as well as Q1 of '27. John Massocca: Okay. And then lastly, just because it's kind of topical. I mean any tenants with exposure to kind of leafy green cultivation and any impact you're seeing there at all? I know it's probably not a big portion of the portfolio. I just kind of want to check. William Reiman: I was wondering when this question might come up. Definitely negative impacts from that. The -- a lot of our farms are -- in those areas are growing berries. But the cyclospora outbreak, which hasn't been linked to any domestically grown fresh produce, it just seems that the way that information is moving around has caused a decrease in demand for all fresh produce. And it's -- look, in fresh produce, we're used to it. We're used to quick moving markets and ups and downs. So as long as this doesn't last very long, it will be just a blip on the screen. But as of right now, across all of fresh produce, demand is down, markets are down, and we'll see planting sort of back off. And we'll just see how this plays out as we transition into winter. David Gladstone: Operator, any further questions? Operator: No, Mr. Gladstone, there are no other questions. I'll turn the floor back to you for final comments. David Gladstone: Okay. Thank you very much. Well, this is a kind of bumpy call that we have, but the second quarter is probably our worst quarter in trying to figure out what's going on in the marketplace. We'll have a lot more for you next quarter, and hope you save up all those good questions for us to answer. That's the end of this. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Gladstone Land, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gladstone Land wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Gladstone Land. The Motley Fool has a disclosure policy. Gladstone Land (LAND) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management observed a significant recovery in almond and pistachio markets, with almond prices reaching 10-year highs and pistachio pricing expectations increasing by approximately two-thirds over the prior year. The company is intentionally shifting toward modified lease structures for permanent crops, reducing fixed costs for growers while increasing Gladstone's participation in crop-share upside to capture market recovery. Performance in the citrus segment remains a headwind, leading to the strategic disposition of two Florida farms following tenant defaults and continued market weakness. Operational expenses were impacted by increased professional fees related to protecting water rights in California and costs associated with managing vacant or non-accrual properties. Management attributes the current lack of acquisition activity to high interest rates, stating they will remain disciplined until rates decline to levels that support accretive growth. Water availability and cost are becoming primary drivers of valuation divergence in Western U.S. real estate, with prime properties maintaining stable values while others face pressure. Management expects to recognize a meaningful amount of additional revenue in Q4 2026. driven by higher final pricing for the 2025 pistachio harvest and strong almond yields. The company is pursuing alternative revenue streams for vacant land, including solar leases and water rights leasing, with approximately $1.5 million in potential annual NOI from pending agreements. Guidance assumes a transition of shared-lease farms back to traditional fixed-rent structures once pricing, interest rates, and water availability stabilize. Management is preparing for a strong El Niño weather pattern this winter, which they anticipate will create opportunities for strategic water acquisitions and excess water storage. The company plans to use proceeds from potential future farm sales to prioritize debt reduction and the repurchase of preferred stock. An impairment charge was recognized on four farms in Arizona to align their book value with a pending purchase and sale agreement price. Approximately $148 million of loans are scheduled for interest rate resets over the next year, including $130 million under the MetLife facility in January 2027. Management highlighted the critical role of crop insurance in limiting downside risk for farms under shared-lease arrangements, particularly during years with volatile yields. A $700,000 cash payment was received from a tenant on non-accrual status; however, management will not recognize this as recurring revenue until a consistent payment pattern is established. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to provide a specific range due to fluctuating pistachio bonuses and unknown '26 yields, but expects higher totals than last year based on current pricing trends. Initial 2026 pistachio pricing is set at $2.50 per pound, which is significantly higher than the previous year's starting point. Management is close to executing alternative leases, including solar and cattle grazing, on a majority of the vacant acreage. Delays in re-leasing were attributed to the time required to remove old almond trees and clean up properties for their next use. A recent 3% increase in federal water allocation triggered a lower pricing tier, which management expects will create downward pressure on water expenses heading into winter. The company typically recognizes water costs one quarter in arrears, suggesting a potential uptick in reported expenses in Q4 for Q3 usage. Management noted that a cyclospora outbreak has caused a general decrease in demand across all fresh produce, despite no link to domestic crops. While currently viewed as a 'blip,' management is monitoring if this will lead to reduced planting for the winter transition.

This article first appeared on GuruFocus. Net Loss: Reported a net loss of about $8.5 million for the second quarter. Net Loss to Common Shareholders: $13.5 million, or $0.32 per share. Adjusted FFO: Negative $1.6 million, or negative $0.04 per share, improved from negative $3.5 million (negative $0.10 per share) in the prior-year quarter. Fixed Base Cash Rents: Increased by about $900,000 year-over-year. Participation Rents: Increased slightly, driven by higher almond prices for the 2025 crop. Direct Farming Operations: Generated a net profit of about $590,000 during the quarter. Recurring Cash Operating Expenses: Increased by about $560,000. Cash Flows from Operations: Increased, driven by higher cash receipts from participation rates and crop sales, and lower interest payments. Common Dividend: Declared a monthly dividend of $0.0467 per share for the third quarter of 2026, keeping the dividend flat. Warning! GuruFocus has detected 6 Warning Signs with LAND. Is LAND fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong demand and price increases for almonds and pistachios, with almond prices at 10-year highs and pistachio pricing expected to be significantly higher than prior year. 2025 almond and pistachio harvests exceeded yield expectations, and 2026 crop pricing for pistachios is up two-thirds from last year, boosting revenue potential. Improved liquidity with about $125 million of immediately available capital and $110 million of unpledged properties, plus over 95% of borrowings at fixed rates averaging 3.45%. Proactive portfolio management, including selling underperforming citrus farms and repurchasing preferred stock at a 7.2% yield, generating gains and reducing debt. Potential for additional revenue from water leases, solar projects, and resolving vacant properties, with an expected annual add of about $1.5 million from three properties. Crop insurance provides downside protection, and the company is positioned to benefit from a forecasted strong El Nino, potentially lowering water costs and creating acquisition opportunities. Reported a net loss of $8.5 million and negative adjusted FFO of $1.6 million for the quarter, with ongoing challenges in the permanent crop sector. Continued weakness in citrus markets led to the sale of Florida farms at a loss, and additional farm sales may be considered, impacting revenue. Water availability concerns due to disappointing snowpack and federal allocations, increasing costs and uncertainty for operations. Six leases expiring over the next six months, representing 3.5% of leasing revenue, with renewal terms uncertain and potential for reduced rents. Pistachio yields are expected to be down due to an off-year and weather events, which could offset some of the benefits from higher prices. The cyclospora outbreak has negatively impacted demand for fresh produce, affecting tenant operations and potentially reducing rents. Q: Can you provide an update on the pistachio market and the expected impact on participation rents for the 2025 and 2026 crops?A: Bill Reiman (EVP of West Coast Operations) confirmed that the primary pistachio processor announced an expected final price for the 2025 crop of at least $2.70 per pound, which is on the upper end of the previously guided range. Additionally, the initial pricing for the 2026 crop was set at $2.50 per pound, a two-thirds increase from the prior year. CFO Lewis Parrish noted that this implies an additional bonus of at least $0.70 per pound for the 2025 crop, which will be recognized in Q4 2026. The 2026 crop's initial guaranteed price will be recognized as the crop is delivered, with any bonuses expected in Q4 2027. Q: How should we think about the timing of revenue recognition for the 2026 pistachio crop given the new pricing?A: Lewis Parrish (CFO) explained that the $2.50 per pound is the initial guaranteed price, which will be recognized as the crop is delivered to the processor. Any additional bonus on top of that will be recognized in Q4 2027. However, the yield is the unknown variable, as this is an off-year for pistachios compounded by a heat spell in March that affected pollination. Bill Reiman added that yields are expected to be down, but the significant price increase may offset this, with final production numbers known by mid-November. Q: Can you provide details on the impairment charge recognized on four farms in Arizona?A: David Gladstone (CEO) clarified that the impairment was on a single property consisting of four farms in Arizona. The company signed a purchase and sale agreement (PSA) with a buyer after quarter-end and marked the property down to the agreed sale price. The transaction is expected to close in late Q3 or early Q4 2026. Q: Were there any non-recurring or one-time items in the second quarter fixed revenues?A: Lewis Parrish (CFO) noted that the company received a cash payment of approximately $700,000 from a tenant that was placed on non-accrual status in Q1 2026. While the company would like this to be recurring, it is keeping the tenant on non-accrual status and does not advise baking this payment into recurring revenue estimates. Q: What is the status of the vacant farms in the portfolio, and what is the potential NOI contribution from resolving them?A: Lewis Parrish (CFO) stated that the company is close to securing alternative leases, including solar and cattle leases, for the majority of the vacant acreage, with some expected to be executed before the end of Q3. For the three properties the company is closest to resolving, the annual NOI contribution could be approximately $1.5 million. Bill Reiman added that most of the vacancies were due to transitions, such as removing almond trees, which took time to clean up. Q: Can you provide color on the upcoming lease expirations over the next six months?A: Lewis Parrish (CFO) indicated that the six leases expiring over the next six months represent about 3.5% of annualized rent. The company expects to renew these leases with existing tenants at similar terms, keeping the revenue contribution relatively flat. Q: How should we think about property operating expenses, particularly regarding water costs, given the current water availability situation?A: Bill Reiman (EVP) explained that a recent 3% increase in federal water allocations lowered the pricing tier for supplemental water, reversing the upward pressure on water expenses. With reservoirs above average and a strong El Nino forecast, water prices are expected to decline as the season progresses. Lewis Parrish added that the company recognizes water costs one quarter in arrears, with a slight uptick expected in Q4 for water used in Q3. Q: Are there any tenants with exposure to leafy green cultivation, and what impact is the cyclospora outbreak having on the portfolio?A: Bill Reiman (EVP) acknowledged the negative impact of the cyclospora outbreak on fresh produce demand, even though it hasn't been linked to domestically grown produce. While many of the company's farms in those areas grow berries, the outbreak has caused a decrease in demand across all fresh produce. He noted that this is typical of the volatile fresh produce market and expects it to be a short-term blip, with planting decisions adjusting accordingly. Q: What is the company's current liquidity position and financing activity?A: Lewis Parrish (CFO) reported approximately $125 million of immediately available capital and $110 million of unpledged properties. The company issued about $14 million of common stock under the ATM program at an average cost of capital of 5.5%, using proceeds to repay its line of credit and fund preferred stock repurchases. Since April 1, the company repurchased $13 million of preferred stock at an average yield of 7.2%, generating a gain of $1.1 million. Q: Can you provide an update on the company's debt maturity and refinancing outlook?A: Lewis Parrish (CFO) stated that over 95% of borrowings are at fixed rates with a weighted average interest rate of 3.45% locked in for an average of 2.3 years. The company has roughly $33 million of loans maturing over the next 12 months, which it does not anticipate any issue refinancing. Additionally, $148 million of loans, including $130 million under the MetLife facility, are scheduled to reprice in January 2027, and the company is actively evaluating options ahead of those resets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Gladstone Land Corporation? Here are five stocks we like better. Gladstone Land reported weak quarterly results: Net loss attributable to common shareholders was approximately $13.5 million, or $0.32 per share, while AFFO improved year over year to negative $1.6 million, or negative $0.04 per share. Crop pricing is improving but production risks remain. Almond and pistachio prices have strengthened, supporting modified lease revenue and the outlook for 2025 crop pricing, although lower 2026 pistachio yields and weather-related damage could weigh on results. Management is focusing on portfolio optimization and liquidity. The company plans to re-lease vacant acreage, potentially sell additional farms, repurchase preferred stock and reduce debt; it had about $125 million in immediately available capital and identified potential vacant-property arrangements that could add roughly $1.5 million in annual revenue. 3 Under-the-Radar AI Infrastructure Stocks Powering the Next Buildout Gladstone Land (NASDAQ:LAND) reported a second-quarter net loss of approximately $8.5 million, while management pointed to improving almond and pistachio pricing, potential revenue from re-leasing vacant acreage, and plans to continue reviewing farms for possible sales. Chief Executive Officer David Gladstone said the company owns about 98,000 acres across 142 farms in 14 states, along with approximately 56,000 acre-feet of water assets in California. The company made no acquisitions or dispositions during the quarter, though it sold two citrus farms in Florida for roughly $3 million after quarter-end. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat The Florida property’s original tenant had defaulted, and a replacement tenant was paying a substantially lower rental rate, Gladstone said. Given ongoing weakness in citrus markets, management decided to sell the farms and use proceeds to repay related mortgages or support other uses. Gladstone said the company may sell additional farms in coming quarters as part of its portfolio review, potentially using proceeds to reduce debt and repurchase preferred stock. Management said strong demand and rising prices for almonds and pistachios are supporting farms operating under modified lease arrangements. These arrangements reduce growers’ fixed costs while giving Gladstone Land greater participation in crop-price upside. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Bill Reiman, executive vice president of West Coast operations, said almond prices have risen almost weekly and described current prices as the strongest in 10 years, citing market reports. He also said a major pistachio processor indicated that final pricing for the 2025 crop could be at least $2.70 per pound for split in-shell pistachios, above the company’s prior expectations. The processor also announced an initial $2.50-per-pound price for the 2026 crop, which Reiman said was roughly two-thirds higher than the prior year’s initial pricing. Management expects most revenue related to the 2025 crop’s final pricing to be recognized in the fourth quarter. → First Solar’s Profit Engine Faces a New Policy Test in Washington However, pistachio yields are expected to be lower in 2026. Reiman said the crop is in a naturally lower-production year and was further affected by a March heat event that disrupted pollination and led to crop drop, blanking and smaller sizes. Gladstone Land has opened crop-insurance claims for blocks expected to fall below insurance thresholds. The company began almond harvesting July 28 and expects yields on its properties to be at least comparable with last year, potentially modestly higher. In wine grapes, Reiman said the 2026 crop appears light, while bulk wine inventories are approaching more manageable levels. He said the industry may be moving beyond its oversupply situation, though conditions remain uncertain. Chief Financial Officer Lewis Parrish said Gladstone Land recorded a net loss attributable to common shareholders of approximately $13.5 million, or $0.32 per share, in the second quarter. Adjusted funds from operations, or AFFO, was negative $1.6 million, or negative $0.04 per share, improving from negative $3.5 million, or negative $0.10 per share, in the year-earlier quarter. Parrish attributed the year-over-year AFFO improvement primarily to higher operating cash revenue and lower interest expense, partly offset by increased property operating expenses. Fixed-base cash rents rose about $900,000 year over year, aided by cash collections from tenants still on non-accrual status and leases signed over the prior year. Participation rents increased slightly, primarily because of higher almond pricing for the 2025 crop. Direct farming operations generated a net profit of about $590,000, driven by an orange harvest and sale at a Florida farm after an earlier tenant lease termination, as well as higher almond prices. Recurring cash operating expenses rose about $560,000, reflecting higher professional fees related to protecting California water rights and costs for vacant, directly operated and non-accrual properties. One cash payment from a tenant on non-accrual status contributed about $700,000 of quarterly fixed-rent revenue, Parrish said. Management is not treating that amount as recurring until the tenant establishes a consistent record of timely payments. The company also recorded an impairment charge related to a property comprising four farms in Arizona. Parrish said Gladstone Land signed a purchase and sale agreement with a buyer after the quarter ended and reduced the property’s value to the agreed sale price. The transaction was expected to close in late third quarter or early fourth quarter. Gladstone Land had approximately $125 million of immediately available capital and about $110 million of unpledged properties available for additional collateral, Parrish said. More than 95% of borrowings were fixed-rate, with a weighted average interest rate of 3.45% and an average remaining fixed term of 2.3 years. During the quarter, the company added unencumbered properties to credit facilities, increasing available capital by about $50 million. It issued approximately $14 million of common stock through its at-the-market program earlier in the quarter, using proceeds to repay its credit line and repurchase preferred stock. Since April 1, it repurchased $13 million of preferred stock at an average repurchase yield of 7.2%, generating a gain of about $1.1 million. Management said it expects to renew six leases expiring in the next six months, which represent approximately 3.5% of annualized leasing revenue, at generally similar terms. For vacant properties, the company is pursuing solar, cattle and fallowing arrangements. Parrish said three of the closest potential resolutions could add about $1.5 million in annual revenue. On water, Reiman said a recent 3% increase in federal water allocations reduced pricing pressure for supplemental water. He said reservoir levels remain above historical averages and the prospect of a strong El Niño winter could create water-acquisition and storage opportunities. Management expects water expense pressure to ease heading into winter. David Gladstone said demand for prime farmland growing berries and vegetables remains stable, especially along California’s coast, while economics for certain permanent crops have improved. Still, he said it was too early to conclude that the company was fully past the challenges affecting permanent crops and water availability. Gladstone Land Corporation (NASDAQ: LAND) is a publicly traded real estate investment trust (REIT) that specializes in the acquisition and ownership of farmland in the United States. Established in 2013 and headquartered in Wayne, Pennsylvania, the company focuses on purchasing high-quality agricultural properties and leasing them to farmers under long‐term, triple‐net lease agreements. This model provides tenants with operational flexibility while generating stable, recurring rental income for investors. The company's portfolio spans several key agricultural regions across the country, including California, the Midwest, and parts of the Southeast. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Gladstone Land Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision. MCLEAN, VA / ACCESS Newswire / August 11, 2026 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") today reported financial results for the second quarter ended June 30, 2026. A description of funds from operations ("FFO"), core FFO ("CFFO"), and adjusted FFO ("AFFO"), all non-GAAP (generally accepted accounting principles in the United States) financial measures, appear at the end of this press release. All per-share references are to fully-diluted, weighted-average shares of common stock, unless noted otherwise. For further detail, please refer to the Quarterly Report on Form 10-Q (the "Form 10-Q"), which is available on the Investors section of the Company's website at www.GladstoneLand.com. Second Quarter 2026 Highlights: Timing Shift in Earnings Recognition: For the 2026 crop year, three of our farms remain under modified lease agreements that include reduced or eliminated fixed base rent and, in some cases, cash lease incentives to tenants in exchange for significantly higher participation rent components. We also continue to operate two properties (consisting of four farms) under management agreements with third-party operators. Collectively, these properties are referred to as our "Repositioned Farms," reflecting a temporary shift toward greater participation-based revenues. These arrangements increase our reliance on participation rents, which are generally recognized once crop results are known, typically in the fourth quarter. Consequently, consistent with 2025, a substantial majority of our 2026 revenue and earnings is expected to be recognized in the fourth quarter. Portfolio Activity: Debt Activity-New Farm Credit Facility: Entered into a new revolving line of credit with Farm Credit of Central Florida, ACA, that provides for borrowings of up to $37.0 million through April 1, 2030. Equity Activity: Paid Distributions: Paid monthly cash distributions totaling $0.1401 per share of common stock during the quarter ended June 30, 2026. Second Quarter 2026 Results: Net loss for the quarter was approximately $8.5 million, compared to approximately $7.9 million in the prior-year quarter. Net loss attributable to common stockholders during the quarter was approximately $13.5 million, or $0.32 per share, compared to approximately $13.9 million, or $0.38 per share, in the prior-year quarter. AFFO for the quarter was approximately $(1.6) million, or $(0.04) per share, compared to approximately $(3.5) million, or $(0.10) per share, in the prior-year quarter. Common stock dividends declared were approximately $0.14 per share for both periods. Total cash lease revenues increased by approximately $959,000, or 7.9%, primarily due to an increase in fixed base cash rents of approximately $899,000, driven by recently executed new and amended leases and cash rent collected during the current quarter from certain tenants that remain on non-accrual status, partially offset by lost revenue from recent farm sales. In addition, participation rent increased modestly, primarily reflecting higher almond prices for the 2025 crop. Direct farming operations generated a net profit of approximately $589,000 during the quarter, primarily driven by the harvest and sale of an orange crop on a Florida farm following the early termination of the prior tenant's lease, together with higher almond prices. Aggregate related-party fees increased by approximately $106,000 during the current quarter, primarily due to a higher administration fee resulting from our relative utilization of our administrator's resources compared with affiliated companies also serviced by our administrator. Excluding related-party fees, recurring cash operating expenses increased by approximately $451,000. Property operating expenses increased by approximately $293,000, primarily due to higher legal expenses incurred to protect water rights on certain California farms and additional costs associated with certain properties that were vacant, direct-operated, or on non-accrual status. General and administrative expenses increased by approximately $158,000, primarily due to higher stockholder-related expenses and professional fees. Interest expense decreased primarily due to the redemption of our 5.00% Series D Cumulative Term Preferred Stock on January 30, 2026, as well as debt repayments made over the past year. Cash flows from operations for the current quarter increased by approximately $16.0 million compared to the prior-year quarter, primarily due to higher cash receipts from participation rents and crop sales, a decrease in cash allowances paid to certain tenants, and lower interest payments. Subsequent to June 30, 2026: Portfolio Activity: Debt Activity-Loan Repayment: Repaid a $2.8 million mortgage loan that bore an effective interest rate (net of interest patronage) of 3.51%. Equity Activity: Third Quarter Distributions: Declared monthly cash distributions of $0.0467 per share of common stock for each of July, August, and September (totaling $0.1401 per share of common stock for the quarter). Pistachio Market Update: Our primary processor announced an initial base price of $2.50 per pound for split in-shell pistachios for the 2026 crop, representing a 67% increase over the initial 2025 crop base price. Comments from David Gladstone, President and CEO of Gladstone Land: "We had a successful 2025 harvest, with yields on the farms where we oversee growing operations exceeding our internal expectations. However, the full financial benefit has not yet been reflected in our results, as a significant portion of the revenue from the 2025 pistachio harvest is expected to be recognized later in 2026 following the conclusion of the marketing period. While the 2026 pistachio crop was already expected to be an "off" year due to the crop's alternate-bearing nature, yields are expected to be further impacted by a March heat event in California that affected pollination across the state. Despite the expected decline in production, market pricing has continued to strengthen, as our primary processor recently announced a 67% increase in the initial base price for split in-shell pistachios for the 2026 crop, which should help offset the impact from lower yields. Almond prices have also strengthened, with current market prices generally 15% to 20% higher than this time last year. Overall, market conditions for pistachios and almonds, the two primary crops grown on our Repositioned Farms, remain favorable, supported by strong demand and improved year-over-year pricing. We view these lease modifications as temporary and continue to target a return to more traditional lease structures that include fixed base rents. In the meantime, we remain focused on enhancing the long-term viability of our farms by pursuing opportunities to acquire additional water resources at attractive prices, further strengthening water security for our farms and growers. Our balance sheet remains in excellent condition, with nearly 96% of our outstanding debt at fixed interest rates. We also continue to maintain strong liquidity, including over $120 million in immediately available capital and more than $110 million in unencumbered properties that could be pledged as additional collateral if needed." Quarterly Summary Information(Dollars in thousands, except per-share amounts) (1) Includes cash dividends paid on our cumulative redeemable preferred stock and the net gain (loss) recognized as a result of shares of cumulative redeemable preferred stock that were redeemed.(2) Represents our pro-rata share of depreciation expense recorded in unconsolidated entities.(3) Consists primarily of (i) the write-off of certain unallocated costs related to a prior universal shelf registration statement, (ii) net property and casualty losses (recoveries) recorded and the cost of related repairs expensed as a result of damage to improvements on certain of our farms caused by certain non-recurring events, (iii) one-time legal costs incurred related to certain corporate organizational matters, and (iv) for 2025 only, the capital gains fee and subsequent adjustment recorded during the three months ended June 30, 2025, which is not due until after the end of the fiscal year and is subject to further adjustment throughout the remainder of the year.(4) This adjustment removes the effects of straight-lining rental income, as well as the amortization related to above-market lease values and certain non-cash lease incentives and accretion related to below-market lease values, deferred revenue, and tenant improvements, resulting in rental income reflected on a modified accrual cash basis. The effect to AFFO is that cash rents received pertaining to a lease year are normalized over that respective lease year on a straight-line basis, resulting in cash rent being recognized ratably over the period in which the cash rent is earned.(5) Consists of (i) the net (gain) loss recognized as a result of shares of cumulative redeemable preferred stock that were redeemed, which were non-cash (gains) charges, (ii) our remaining pro-rata share of (income) loss recorded from investments in unconsolidated entities, and (iii) (less) plus net non-cash (income) expense recorded as a result of additional water assets (received) used in certain transactions.(6) Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, including investments in water assets, and adjusted for accumulated depreciation and amortization and impairment charges, if any.(7) Consists of the principal balances outstanding on all indebtedness, including our lines of credit, notes and bonds payable, and, as of the three months ended June 30, 2025, only, our Series D Term Preferred Stock, which was redeemed in full on January 30, 2026.(8) Based on farmable acreage; includes direct-operated farms. Conference Call for Stockholders: The Company will hold a conference call on Wednesday, August 12, 2026, at 8:30 a.m. (Eastern Time) to discuss its earnings results. Please call (877) 407-9046 to join the conference call. An operator will monitor the call and set a queue for any questions. A conference call replay will be available after the call and will be accessible through August 19, 2026. To hear the replay, please dial (877) 660-6853, and use playback conference number 13760773. The live audio broadcast of the Company's conference call will also be available online on the Investors section of the Company's website, www.GladstoneLand.com. About Gladstone Land Corporation: Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that owns farmland and farm-related properties located in major agricultural markets in the U.S. The Company currently owns 142 farms, comprised of approximately 98,000 acres in 14 different states and nearly 56,000 acre-feet (or over 18.1 billion gallons) of water assets in California. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, blueberries, figs, olives, pistachios, and wine grapes, which are generally planted every 20-plus years and harvested annually. Gladstone Land pays monthly distributions to its stockholders and has paid 162 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.0467 per month, or $0.5604 per year. Additional information, including detailed information about each of the Company's farms, can be found at www.GladstoneLand.com. Owners or brokers who have farmland for sale in the U.S. or those looking to buy farms should contact: Western U.S. - Bill Reiman at (805) 263-4778 or [email protected]; Midwestern U.S. and Mid-Atlantic U.S. - Joey Van Wingerden at (703) 287-5914 or [email protected]; or Southeastern U.S. - Brett Smith at (904) 687-5284 or [email protected]. Lenders who are interested in providing us with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or [email protected]. For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.GladstoneCompanies.com. Non-GAAP Financial Measures: FFO: The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO per share provides investors with an additional context for evaluating its financial performance and as a supplemental measure to compare it to other REITs; however, comparisons of its FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs. CFFO: CFFO is FFO, adjusted for items that are not indicative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. These items include certain non-recurring items, such as acquisition- and disposition-related expenses, the net incremental impact of operations conducted through our taxable REIT subsidiary, income tax provisions, and property and casualty losses or recoveries. Although the Company's calculation of CFFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its sustainable operating performance. Accordingly, CFFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance. For a full explanation of the adjustments made to arrive at CFFO, please read the Form 10-Q, filed today with the SEC. AFFO: AFFO is CFFO, adjusted for certain non-cash items, such as the straight-lining of rents and amortizations into or against rental income (resulting in cash rent being recognized ratably over the period in which the cash rent is earned). Although the Company's calculation of AFFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its sustainable operating performance on a cash basis. Accordingly, AFFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance. For a full explanation of the adjustments made to arrive at AFFO, please read the Form 10-Q, filed today with the SEC. A reconciliation of FFO (as defined by NAREIT), CFFO, and AFFO (each as defined above) to net income (loss), which the Company believes is the most directly-comparable GAAP measure for each, and a computation of fully-diluted net income (loss), FFO, CFFO, and AFFO per weighted-average share is set forth in the Quarterly Summary Information table above. The Company's presentation of FFO, CFFO, or AFFO, does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: Certain statements in this press release, including, but not limited to, the Company's ability to maintain or grow its portfolio and FFO, expected increases in capitalization rates, benefits from increases in farmland values, increases in operating revenues, and the increase in NAV per share, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Company's ability to procure financing for investments, downturns in the current economic environment, the performance of its tenants, the impact of competition on its efforts to renew existing leases or re-lease real property, and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" within the Company's Form 10-K for the fiscal year ended December 31, 2025, as amended, as filed with the SEC on April 7, 2026, and certain other documents filed with the SEC from time to time. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Gladstone Land Corporation, (703) 287-5893 SOURCE: Gladstone Land Corporation View the original press release on ACCESS Newswire

MCLEAN, VA / ACCESS Newswire / July 14, 2026 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") announced today that its board of directors declared the following cash distributions for each of July, August and September 2026. Monthly Cash Distributions: Common Stock: $0.0467 per share of common stock for each of July, August and September 2026, payable per the table below: Summary of Common Stock Cash Distributions The Company has paid 161 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company offers a dividend reinvestment plan (the "DRIP") to its common stockholders. For more information regarding the DRIP, please visit www.GladstoneLand.com. Series B Preferred Stock (Nasdaq:LANDO): $0.125 per share of Series B Preferred Stock for each of July, August and September 2026, payable per the table below: Summary of Series B Preferred Stock Cash Distributions The Company has not skipped, reduced, or deferred a monthly Series B Preferred Stock distribution to date. Series C Preferred Stock (Nasdaq:LANDP): $0.125 per share of Series C Preferred Stock for each of July, August and September 2026, payable per the table below: Summary of Series C Preferred Stock Cash Distributions The Company has not skipped, reduced, or deferred a monthly Series C Preferred Stock distribution to date. Series E Preferred Stock (Unlisted): $0.104167 per share of Series E Preferred Stock for each of July, August and September 2026, payable per the table below: Summary of Series E Preferred Stock Cash Distributions The Company has not skipped, reduced, or deferred a monthly Series E Preferred Stock distribution to date. Earnings Announcement: The Company also announced today that it plans to report earnings for its second quarter ended June 30, 2026, after the stock market closes on Tuesday, August 11, 2026. The Company will hold a conference call on Wednesday, August 12, 2026, at 8:30 a.m. Eastern Time to discuss its earnings results. Please call (877) 407-9046 to join the conference call. An operator will monitor the call and set a queue for questions. A conference call replay will be available after the call and will be accessible through August 19, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13760773. The live audio broadcast of the Company's conference call will also be available online at www.GladstoneLand.com. About Gladstone Land: Gladstone Land is a publicly-traded real estate investment trust that invests in farmland located in major agricultural markets in the U.S., which it leases to farmers. The Company currently owns 142 farms, comprised of approximately 98,000 acres in 14 different states and over 55,000 acre-feet of water assets in California. Additional information can be found at www.GladstoneLand.com. For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.GladstoneCompanies.com. Source: Gladstone Land Corporation For further information: Gladstone Land Corporation, (703) 287-5893 SOURCE: Gladstone Land Corporation View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gladstone Land Corp (NASDAQ:LAND) reported strong 2025 harvest results, particularly in almonds and pistachios, with yields meeting or exceeding projections. The company has increased its liquidity by $50 million through adding unencumbered properties to existing and new credit facilities. Gladstone Land Corp (NASDAQ:LAND) successfully redeemed all of its Series B term preferred stock, avoiding a coupon step-up from 5% to 8%. The company has been active in buying back preferred stock, achieving a total gain of nearly $700,000. Gladstone Land Corp (NASDAQ:LAND) has a strong water asset base, with over 56,000 acre-feet of water, primarily in California, which is crucial for its operations. Gladstone Land Corp (NASDAQ:LAND) reported a net loss of $4.3 million for the first quarter, with a net loss to common shareholders of $10 million or $0.24 per share. The company is facing ongoing tenant-related issues, with some tenants placed on non-accrual status due to rent payment delays. There are currently eight farms that are wholly or partially vacant, impacting revenue generation. Fixed-based cash rents decreased by about $2.4 million for the quarter, primarily due to lost revenues from transitioned properties and tenants on non-accrual status. The company is experiencing increased property operating expenses, driven by supplemental water costs and higher professional fees for protecting water rights. Warning! GuruFocus has detected 5 Warning Signs with LAND. Is LAND fairly valued? Test your thesis with our free DCF calculator. Q: Is there any remaining marketing bonus expected to be recognized in the second quarter, or will it all be in the back half of the year? A: We expect to recognize the remaining part of the marketing bonus in Q4. Last year's bonus was $0.90 per pound, and the early bonus payment this year equated to about $0.50 per pound. We anticipate the total bonus to be higher than last year, but the exact amount is still uncertain. (Unidentified_5, CFO; Unidentified_4) Q: How are your Florida farms performing in 2026, especially given the drought conditions? A: While Florida is experiencing drought conditions, we haven't encountered any significant water shortages impacting our farm operations. There have been no crop losses due to lack of irrigation water. (Unidentified_5, CFO; Unidentified_4) Q: Can you provide a bracket for the dollar amount of farms you might sell in the next couple of quarters? A: Selling farms is unpredictable, but we hope to sell between two and five farms. We have a letter of intent for one farm, and we're optimistic about selling a couple more, but we don't need to sell more than that. (Unidentified_2, CEO) Q: Can you give us some color on the farm that moved from fixed to participation rent? A: The farm is a potato farm in Colorado. The base rent was cut in half, but we expect the variable rent component to bring us back to the previous lease level. This will be clearer in the second half of the year. (Unidentified_5, CFO) Q: What is the outlook for re-leasing truly vacant properties? A: We are close to securing deals for some vacant farms, exploring alternative streams like water and solar leases. We hope to have half of the vacant acreage back to income-producing within the next three to six months. (Unidentified_5, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, May 12, 2026 at 8:30 a.m. ET Chairman & CEO — David Gladstone President — William Reiman Chief Financial Officer — Lewis Parrish Today, we'll discuss FFO, which is funds from operations, a non-GAAP accounting term defined as net income, excluding gains or losses from the sale of real estate and any impairment losses on property plus depreciation and amortization of real estate assets. We may also discuss core FFO, which we generally define as FFO adjusted for certain nonrecurring revenues and expenses and adjusted FFO, which further adjusts core FFO for certain noncash items, such as converting GAAP rents to normalized cash rents. We believe these metrics can be a better indication of our operating results and allow better comparability of our period-over-period performance. Now I'll turn it back to David Gladstone. David Gladstone: Well, thank you, Catherine. And just to remind you all, we still own about 99,000 acres across 144 farms. About 56,000 acres of -- acre-feet of water, which is more than 18 billion gallons. Our farms are in 14 different states and our water assets, well, they're all in California. That's where it's the driest. We didn't have any acquisition or sales activity during the quarter, but we may consider selling some additional farms during the next few quarters. If we're able to complete some of those, we'd like to use most of the proceeds to pay down debt and buy back preferred stock. We've been doing a lot of that. We continue to take a disciplined approach as we always do to these acquisitions and active -- there's some activity in the market now, but not much, still kind of slow. When conditions improve, it may make sense to start growing again. So we're watching all the numbers and trying to determine where we're going to go from here. Let me talk about a couple of leases. Prior to the call, due to market conditions affecting certain of our permanent crops, particularly the nuts and the wine grapes, we modified the lease structures -- lease structures so that we can handle a couple of different things. Fixed costs were allowed to participate more in the upside because we're in the higher crop share participation. We've modified our leases so that we're taking a lot more risk in terms of growing, and we continue to operate 2 properties with the help of third-party growers. Overall, 2025 harvest came in very strong. We were all wrong, including the U.S. government. Imagine that they projected things wrong. Particularly on the almond side and pistachio side, the yields were generally meeting or exceeding our own projections. And the 2025 crop just continues paying. We keep getting money in. We signed up most of these same farms under the similar agreement that we had in '26. So we expect to see some similar earning patterns this year. I think it would be very hard to meet or exceed those things that we did last year. That was quite a year of 2025. And I also want to remind everyone that the crop insurance continues to play a very important role to all of us. It helps us limit the downside risk on the farms that is if something happens, which sometimes does, we can call on the insurance to give us some money back. Our goal is to eventually transition all of our farms back to more traditional lease structures with fixed-based rents. But the timing of that will depend on several factors that are out there today. Most importantly, we've got to get some lower interest rates. I don't know what's going on over at the Federal Reserve, but they just aren't playing the game they need to play. Looking ahead, we have 5 leases scheduled to expire over the next 6 months. In total, these leases represent about 4% of our total lease revenue for the year-to-date in 2026. We're currently in discussion with both of the existing tenants that are in these -- that 2 of these properties are in and the prospects of new tenants about leasing any of these farms. I think we'll have them all back in shape. And now I'll give a quick update to some of the ongoing tenancy matters that we're working through. Currently have 8 farms that are wholly or partially vacant, and we're actively working towards solutions to get these farms back into a stable. We think we're getting close to a few of these, and I think we'll be in good shape before the year ends. We're also currently recognizing revenue in a cash basis for leases with 4 tenants. We were able to resolve one of those situations during the quarter, but we're adding 2 new tenants to the list after they fell behind on their rent payments. I'm going to stop here, and we'll call in the guy who's really in touch with the world of farming. That's Bill Reiman. He's been reporting much of our current management focus. And Bill, do you want to come on board? William Reiman: Yes. Thanks, David. Good morning, everybody. As we've been reporting, much of our current management focus is on these properties being operated under the modified lease agreements or farmed directly utilizing third-party farm operators. with the marketing season for almonds and pistachios for the 2025 crop about half done, we're seeing prices firming up, especially with pistachios. Couple that with our crop yields being larger than forecasted, our final crop revenue and profit numbers for 2025 should beat our expectations. Looking forward to the 2026 season, we are through winter, which ended with a very meager snowpack in most Western U.S. watersheds, although many areas where our farms are located received above normal rainfall, especially in the early spring. This means spring soil water content is high, and it should get crops off to a potentially strong start. As of April 1, our almond bloom was complete. And while across California, bloom was mixed, our locations are pretty darn good with initial crop sets stronger than last year's. March had an unusual hot spell right in the middle of pistachio bloom, and this weather event caused quite a few issues around the state. Specifically, some trees have aborted a significant percentage of their crop. It's difficult to tell the impact to our orchards at this time, mainly because the 2026 crop year is considered what we call a down year for pistachios. Pistachios are what we call alternate bearing, meaning that crop yields on a year-to-year basis can vary from very high to very low and can be very dramatic. Since this is a low production year or a down year, as we say, some of our pistachio blocks didn't have as much crop -- didn't have much crop on there before the heat spell. So it's possible that impact we feel will be minimal. Another reason it's hard to predict is just how the remaining fruit set develops. There's a long way to go in the growing season, and we just don't know how it will shape up. So -- and also another factor this impact is with a major reduction in supply, it's definitely going to continue putting upward pressure on pricing. There's a chance that pricing outweighs the crop loss. So we'll just have to wait and see. Currently, all of our properties where we have invested capital in the crops are tracking according to budget. And we may have an increase in water expense on a couple of ranches, we should end up right in line with budget targets. Talk about markets a little bit. We think most ag real estate markets in the Western U.S. have bottomed out, and we're starting to see a little more activity with transactions. In particular, we've seen several pistachio acquisitions completed in the last 6 months at prices we haven't seen in a few years. We don't believe valuations are necessarily making a comeback just yet, but there are some strategic buyers willing to pay a higher price for orchards with good cash flow potential. Coastal California values remain flat with higher-than-normal inventory and the Pacific Northwest is stable. When really good properties come on the market up there, they sell very quickly. Medium, lower-quality properties sit and wait. I'd say values and rents in the Pacific Northwest are stable. And then last note on real estate markets, particularly in California, but really all over the West, we're seeing a divergence of values between properties with really good water and those without. Due to regulations and policy, we expect that to really be a permanent situation. The war in Iran, continued tariff drama, trade tensions are all still in the headlines. The crop markets seem to have settled in and kind of accepted this uncertainty to a large degree. Net crop markets continue to show notable resilience and strength, particularly for pistachios, see tremendous growth in demand for all things pistachio in global markets. Growth prices are continuing to move upward. We expect our minimum pricing for 2026 to be significantly higher than 2025. So that's good news. I would say the general sentiment in the pistachio industry is even with a large number of nonbearing acres, it's underplanted. So this is really good news for growers and the value of their crop going forward. And for us, it's really important. It's the largest crop in our portfolio. Almonds have been pretty steady, some minor ups and downs due in large part to the drama in the Strait of Hormuz, but prices have lately been trending upward after recent crop size projections were released, showing a similar crop to last year. It appears the market was expecting a larger crop and therefore, lower prices. We've reported in the past that we believe the market is underbought. So these lower-than-expected predictions are driving buyers to fulfill their needs. Wine grape markets continue to underperform, although we're beginning to see some varietals, particularly some white grape varietals, become short in supply. At the moment, this isn't causing any increase in prices or providing any incentive for wineries to contract for supply, but it is the first encouraging sign we've seen in a couple of years. Vineyard removals continue at a rapid pace in California and around the world. So we're hopeful that this pullback in supply will soon bring the market back into balance. There's been a lot said about fertilizer fuel prices jumping up due to the war. While this is true, our exposure is somewhat limited. Overall fertilizer cost as a percentage of total cultural cost for most of the crops growing on our farms is relatively small. In the case of our operated farms, there were many purchases made pre-war. So that limits the impact in those particular cases. Finally, water. We initially had a strong start to the winter in terms of snow and rain. However, once we got past early January, we only had a few storms come through, and they came in late winter and early spring. The result was a very weak snowpack, but reservoirs above normal and good spring moisture set the season off on a good note. We're in the market looking for good opportunities to acquire water for this year and beyond. We're still experiencing the positive effects of this recent wet year trend that's resulted in availability of water at economical prices. Our team continues to evaluate these opportunities with the goal of strengthening the overall water security of the portfolio through both long and short-term strategic water purchases, continuing to invest in water delivery, storage infrastructure and identifying opportunities to create synergies across our farm assets. Now I'll turn it over to our CFO, Lewis Parrish. Lewis Parrish: Thanks, Bill, and good morning, everyone. I'll start with a brief update on our recent financing activity. We did not incur any new borrowings or repay any loans during the quarter, but we did add some unencumbered properties to certain existing and new credit facilities that increased our immediately available liquidity by about $50 million. In January, we redeemed all of our Series D Term Preferred Stock to avoid a step-up in the coupon from 5% to 8% -- that redemption was funded through a combination of common stock issued under our ATM program and a draw on our line of credit, which has since been repaid. So far in 2026, we've raised about $50 million through our ATM program. And along with the majority -- along with the proceeds from the recent property sales, the majority of this capital has been used to reduce leverage on the balance sheet, including the redemption of the Series D Term Preferred Stock, repaying the line of credit and buying back Preferred Stock through our repurchase program. And speaking of that last point, we've bought back over $6 million of Preferred Stock so far in 2026 at an average repurchase yield of 7.4%, resulting in a total gain of nearly $700,000. Turning to our operating results. For the first quarter, we recorded a net loss of about $4.3 million and net loss to common shareholders of $10 million or $0.24 per share. Adjusted FFO for the first quarter was $3.1 million or $0.08 per share compared to $2 million or $0.06 per share in the same quarter last year. The increase in AFFO was primarily driven by an early pistachio crop bonus payment we received, partially offset by ongoing tenant-related issues we continue to work through. Year-over-year fixed base cash rents decreased by about $2.4 million for the quarter, primarily due to lost revenues from 1 property that was transitioned to direct operations last year and 2 tenants that were placed on nonaccrual status this quarter. The prior year quarter also included a $2.4 million termination fee from an outgoing tenant. This decrease was largely offset by an increase in participation rents of about $4.4 million, primarily due to receipt of an early partial bonus payment on the 2025 pistachio crop. Typically, this bonus is paid in either late 2026 or early 2027, but one of our processors paid a portion of it early, which allowed us to recognize that revenue earlier than normal. The remaining portion of the bonus is still expected to be recognized on the normal schedule and recognized in the fourth quarter. Net income generated from crop sales on our direct operated farms was about $1.9 million during the first quarter, and that was also primarily due to the early pistachio bonus payment. And also similar to participation rents, we expect to recognize the remaining portion of this marketing bonus later in 2026. On the expense side, our recurring cash operating expenses increased by about $750,000. Total related party fees declined slightly, primarily due to a lower base management fee resulting from recent farm sales. Property operating expenses increased, mainly driven by the cost of supplemental water we were required to provide on one of our properties pursuant to the lease as well as higher professional fees associated with protecting water rights on certain farms in California. G&A expenses increased primarily due to higher legal and accounting fees incurred during the current quarter. And finally, cash flows from operations increased largely as a result of higher cash receipts from participation rents and crop sales, partially offset by the receipt of that termination fee in the prior year quarter. Turning to liquidity. We currently have about $150 million of immediately available capital and over $110 million of unpledged properties that could be used as additional collateral as needed. Currently, over 99% of our borrowings are at fixed rates with a weighted average interest rate of 3.41% locked in for another 2.5 years. This has helped shield us from the interest rate volatility we have seen over the past few years. Looking ahead, we have about $17 million of scheduled principal amortization payments due over the next 12 months, which is less than 4% of our total debt outstanding. We also have about $155 million of loans with fixed rate terms that reset over the next year, though the loans themselves are not maturing. This includes about $133 million of loans under our MetLife facility that are scheduled to reprice in January 2027. Finally, regarding our common distributions. In April, we declared a monthly dividend of $0.0467 per share for the second quarter of 2026. At our current stock price of $9.44, this represents a 5.9% annualized yield, which is above the REIT sector average. I'll turn it back over to you. David Gladstone: Okay. Thank you, Lewis. Overall, demand for prime farmland growing berries and vegetables is very stable right now in our regions, particularly along the coast where we are. We're also starting to see some signs of improving in certain permanent crops, both in the pricing and the broader economies for those crops. So we're hopeful that this is the worst that all the things that happened to us in the last couple of years are behind us. But it's too early to say that. You don't know what's going to go with the crop, and that makes it difficult. We're just like many other REITs that is different. It belongs to the fact that -- our manufacturing facilities are outside, and they're also alive and growing. So it's a different world that we're in, obviously, and it's very hard to predict. In closing, over the long run, we expect inflation, particularly for the food sector to continue to move higher. There doesn't seem to be any slowdown there. We expect the values of the underlying farmland to increase as well. And over time, as a result, we should be in good shape in terms of collateral for all of our loans. We expect this especially to be true of healthy foods such as the ones we grow. These are fresh fruits and vegetables and nuts and long-term trends toward healthier eating continue to push these products. Now we'll open it up for some questions. So Victoria, if you'll come on and guide us through that. Operator: [Operator Instructions] Our first question comes from Craig Kucera with Lucid Capital. Craig Kucera: I think last quarter, you had thought you were going to get the marketing bonus in early April. Clearly, a lot of it was recognized here in the first quarter. Is there any left that you will expect to recognize in the second quarter? Or will we expect all of it kind of in the back half of the year? Lewis Parrish: So as far as cash -- well, speaking for the bonus specifically, we do expect to record -- to be able to recognize the remaining part in Q4. As for the amount, I'll just give you -- we don't know yet, of course. But if we had to guess, and I'm going to let Bill Reiman chime in on this, too. But last year, the marketing bonus was -- when I say last year, I mean for the '24 crop, it was $0.90 a pound. And we don't know the full bonus yet, but the early bonus payment equated to about $0.50 a pound. So right now, I think we expect the total bonus to be higher than last year, but we don't know that for sure. But I think if we had to guess at a range, it'd be somewhere between that $0.40 per pound coming in Q4 or it could be much higher than that. I'll let Bill chime in with any more insight to that bonus amount or what we're seeing prices doing. William Reiman: Yes, Lewis, you nailed it. We're -- it's supposed to be higher than last year, and nobody is really revealing their cards yet. But yes, $0.90 a pound last year. We've got $0.50 so far. It could just be $0.40. It could be a full $0.90. We just -- nobody is really hinting at anything at this point, except that it's going to be larger than last year. Craig Kucera: Got it. So roughly 50% plus or minus sounds probably pretty reasonable with maybe some upside. William Reiman: Yes. Craig Kucera: Okay. Great. In the 10-Q, you referenced that less than 5% of California was in sort of a drought designation, and you had some commentary on that. But I'm curious to hear your thoughts on how your Florida farms are performing thus far in 2026. Lewis Parrish: So I think this is the first time since I've been here where California was not in a drought and Florida was. So definitely a reversal of importance there. We've had some -- we haven't heard of any news on our farms being short on water to the extent where it's impacting the operations on the farms. And it is in a drought, and there are regulations coming through for certain farmers having to be called on to cover losses of wells going dry. But we haven't heard of any issues with our farmers having -- being short on water and covering their crops. Bill, if you have anything more to add on that? William Reiman: Yes. No, that's true. There hasn't been any restrictions, any -- there hasn't been any crop losses due to lack of irrigation water. We did have in the wintertime for frost control, we had some issues, but that's using water for frost control, uses a large amount of water, but -- and we had a few issues with neighbors there. But other than that, there haven't been any crop impacts whatsoever. Craig Kucera: Okay. That's helpful. David Gladstone: And there's one footnote here that you should know about. We have a water farm in Florida. and it's got plenty of water. So we're not seeing any severe drought situations down there. I think we're going to be fine in Florida forever because you pretty much put a stick in the ground and it's water down there. So it's a situation which the wind blows one day and it's cold and then all of a sudden, everything is bright and shiny as it is most days. Keep going, Craig, any more questions? Craig Kucera: I do. I've got a handful more. David, you mentioned you're going to sell -- might sell a few farms in the next couple of quarters. Last year, I think you sold about $90 million, maybe $70 million the year before. Can you kind of bracket the dollar amount you think you might wind up selling? Or can you do that at this point? David Gladstone: That's a difficult one. I don't know if you know it in farming, selling a farm is a big to do, and you never know when they're going to follow through. We have one now in which we have a letter saying they're going to buy it, and we'll see the lawyers are drafting. And I'm glad to get rid of that one because it gave us some problems in the past. But I don't really have a number. I'm hopeful that we can sell a couple of farms, but I don't think we need to sell more than that. We're pretty well covered in tenants that are working farms and the ones where we don't have a strong tenant and we've taken them over, these are the ones in California. We've got some good growers. I've been surprised. I didn't think it would work out as well. But last year, it was just a boomer in terms of return on investment. So I guess we will do maybe what we're doing somewhere between 2 and 5 farms. Lewis Parrish: It's a good range, yes. Craig Kucera: Okay. That's helpful. David Gladstone: He's gonna sell 2 to 5 farms. What you got, Craig? Craig Kucera: Change gears. I'm curious about your leasing activity year-to-date. It looks like you moved one farm from fixed to participation rents. Can you give us some color on where that farm is located and what the crop type is? Lewis Parrish: That's a potato farm in Colorado. The base rent was basically cut in half and -- but we are expecting the variable rent component of that farm to get us pretty much right to where we were with the prior lease. But that's another variable that won't be known until the second half of the year. Craig Kucera: Okay. And just one more for me. I mean you've been pretty aggressive on issuing equity to take down the preferred. You got through the first round. You've got a couple of others at 6%. Are you anticipate continuing to do that throughout the year? Lewis Parrish: The repurchase program on the Series B and C, we would like to continue being active in that repurchase program. Operator: [Operator Instructions] Our next question comes from John Massocca with B. Riley. Maximilian Loyuk: This is Max stepping in for John. What is the outlook for re-leasing at truly vacant properties, either in terms of dispositions or re-leasing? Lewis Parrish: So I think... Sorry. We have a few farms that we're working on right now are not producing income. They're vacant, as you mentioned, that we think we're pretty close to getting deals in place. Now it's not necessarily the traditional types of ag leases. We're working on alternative streams, for example, fallowing incentive programs, water leases, solar leases. We've got -- we're discussing terms with potential tenants on these. And hopefully, within the next 3 months or so, we can get some of these executed. But the ones -- the ones I'm specifically talking about, these are some of the larger farms in that vacant category. So hopefully, for the next 3 to 6 months at most, we can get at least half of this acreage back to income producing. Maximilian Loyuk: Great. And could you remind us why the cost of sales is so low relative to crop sales? Was that because you already booked costs associated with that revenue? Or was it something else? Lewis Parrish: Yes, exactly. This is related to the '25 crop. All those expenses were recognized in Q4 of last year as the crops were sold. But with pistachios, at that time in Q4, we only had -- we were only able to recognize the minimum payment associated with that crop. This is the bonus payment that we were not able to measure at the end of last year. So that's just straight revenue straight to the bottom line for us as will be the remaining part of that crop, the bonus payment. Maximilian Loyuk: Got it. And apologies if this was already discussed, but is there a time line for getting the participation-based farms back to fixed base rents? Lewis Parrish: We wish we knew that answer as well. It's definitely not for the '26 crop year and '27 crop year is still in flux, but if I had to guess, I think we'd be in a similar situation for the '27 crop year as well. Bill, what's your outlook on this? William Reiman: Yes. I mean it's really the tenant pool, it's really difficult. Capital is constrained -- working capital is constrained for a lot of growers. And so until that loosens up, I just don't see the number of growers willing to take on the risk on leasing. I just don't see that pool increasing in the near future. So hopefully, that turns around sooner rather than later. But as of right now, we're probably stuck in this for at least another season. Maximilian Loyuk: Got it. And are there -- is there any new distress in the portfolio? Has the rebound in tree nut prices potentially mitigated credit risk somewhat? William Reiman: A little bit, a little bit. But for a lot of growers, that downturn in almond pricing, they're still paying the price for that, right? It takes time. Prices have rebounded, obviously, for the last little over a year, 18 months, but it takes a couple of years of good prices to fill in the hole that we've done for ourselves. So it takes a little bit of time to fully recover. Maximilian Loyuk: And then one more for me. On the Series B buyback, how are you thinking about that as a use of cash flow capital raising versus paying down amounts on the revolver? Lewis Parrish: So the revolver now is fully repaid to the minimum balance. That was our -- with the ATM proceeds and also some proceeds we had from farm sales last -- at the end of last year. We used that to pay down the line of credit, which is, again, fully down to this minimum balance. And then most of the excess has been going into the preferred repurchase program. So Series B, Series C, we'd love to buy more of it back than we are right now, but these are 2 thinly traded securities. So we're limited with how much we can buy back on a daily basis. But we want to continue making the best use that we can. We're buying back at a 7.4% yield right now. So the common that we raised was at about 5.5%, 5.6%. That's a spread we'll take any day. David Gladstone: And just to remind Max, this is a situation that's ongoing day by day. If you could lob a few calls into the people who set interest rates and get them to push them back to 3.5% where we used to borrow, that would be nice because we could eliminate a lot of preferred stock, and that would help our earnings. Latoria (sic) [Victoria ] , would you come on now and close this up for us? That's the end of the day. Operator: Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day. Before you buy stock in Gladstone Land, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gladstone Land wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Gladstone Land. The Motley Fool has a disclosure policy. Gladstone Land (LAND) Q1 2026 Earnings Transcript was originally published by The Motley Fool