Gladstone Land outlines plans to sell 2 to 5 farms while expanding liquidity by about $50M

Earnings Call Insights: Gladstone Land (LAND) Q1 2026

MANAGEMENT VIEW

* "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." (Founder, Chairman, CEO & President David Gladstone) "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."
* "Due to market conditions affecting certain of our permanent crops, particularly the nuts and the wine grapes, we modified the lease structures." (Founder, Chairman, CEO & President Gladstone) "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."
* "With the marketing season for almonds and pistachios for the 2025 crop about half done, we're seeing prices firming up, especially with pistachios." (Executive Vice President of West Coast Operations William Reiman) "Our final crop revenue and profit numbers for 2025 should beat our expectations."
* "We did add some unencumbered properties to certain existing and new credit facilities that increased our immediately available liquidity by about $50 million." (CFO & Assistant Treasurer Lewis Parrish) "So far in 2026, we've raised about $50 million through our ATM program" and "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."

OUTLOOK

* "Looking ahead, we have 5 leases scheduled to expire over the next 6 months." (Founder, Chairman, CEO & President Gladstone) "In total, these leases represent about 4% of our total lease revenue for the year-to-date in 2026."
* "Our goal is to eventually transition all of our farms back to more traditional lease structures with fixed-based rents." (Founder, Chairman, CEO & President Gladstone) "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."
* "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." (CFO Parrish) "Capital is constrained -- working capital is constrained for a lot of growers." (Executive Vice President Reiman)

FINANCIAL 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." (CFO Parrish) "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."
* "Year-over-year fixed base cash rents decreased by about $2.4 million for the quarter" and "participation rents" rose "about $4.4 million, primarily due to receipt of an early partial bonus payment on the 2025 pistachio crop." (CFO Parrish) "The remaining portion of the bonus is still expected to be recognized on the normal schedule and recognized in the fourth quarter."
* "We currently have about $150 million of immediately available capital" and "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." (CFO Parrish) "We have about $155 million of loans with fixed rate terms that reset over the next year, though the loans themselves are not maturing."

Q&A

* Craig Kucera, Lucid Capital Markets, LLC: "Is there any left" of the pistachio marketing bonus to recognize sooner? CFO Parrish: "we do expect to record -- to be able to recognize the remaining part in Q4" and "the early bonus payment equated to about $0.50 a pound" after a prior-year "$0.90 a pound" bonus; Executive Vice President Reiman: "it's going to be larger than last year" but "we just" don’t know whether it is "just be $0.40" or "a full $0.90."
* Craig Kucera, Lucid Capital Markets, LLC: How are Florida farms doing in 2026 amid drought? CFO Parrish: "we haven't heard of any issues with our farmers having -- being short on water and covering their crops"; Executive Vice President Reiman: "there haven't been any crop impacts whatsoever"; CEO Gladstone: "we have a water farm in Florida. and it's got plenty of water."
* Craig Kucera, Lucid Capital Markets, LLC: Can you bracket expected farm sales? CEO Gladstone: "I don't really have a number" and "I guess we will do maybe what we're doing somewhere between 2 and 5 farms."
* Craig Kucera, Lucid Capital Markets, LLC: What was the fixed-to-participation lease change? CFO Parrish: "That's a potato farm in Colorado" where "The base rent was basically cut in half" and the variable component is expected to "get us pretty much right to where we were with the prior lease."
* Maximilian Loyuk, B. Riley Securities, Inc., Research Division: Outlook for truly vacant properties? CFO Parrish: "We're working on alternative streams, for example, fallowing incentive programs, water leases, solar leases" and "hopefully, within the next 3 months or so, we can get some of these executed."
* Maximilian Loyuk, B. Riley Securities, Inc., Research Division: Any new distress and does nut pricing help? Executive Vice President Reiman: "A little bit" but "it takes a couple of years of good prices to fill in the hole."
* Maximilian Loyuk, B. Riley Securities, Inc., Research Division: Preferred buybacks vs. revolver paydown? CFO Parrish: "the revolver now is fully repaid" and "most of the excess has been going into the preferred repurchase program" because "We're buying back at a 7.4% yield" versus common raised "at about 5.5%, 5.6%."

SENTIMENT ANALYSIS

* Analysts: slightly negative, with repeated probing on timing/visibility of the pistachio bonus, vacancy monetization, and tenant distress, including "is there a time line" for returning to fixed rents and whether there is "any new distress in the portfolio?" (Maximilian Loyuk, B. Riley Securities, Inc., Research Division)
* Management: slightly positive on crops and liquidity but cautious on forecasting, including "It's difficult to tell the impact" of pistachio bloom heat effects and "There's a long way to go in the growing season." (Executive Vice President Reiman)
* Current vs. prior quarter: management used more explicit uncertainty language on lease normalization, including "We wish we knew that answer as well" on timing back to fixed rents. (CFO Parrish)

QUARTER-OVER-QUARTER COMPARISON

* Portfolio actions shifted from Q4 asset sales to Q1 pause, with CEO Gladstone saying in Q1, "We didn't have any acquisition or sales activity during the quarter," versus Q4, "we sold a few more farms" totaling "$95 million in proceeds" for 2025.
* Vacancy and rent-collection pressure stayed central, with CEO Gladstone moving from Q4 "9 farms that are wholly or partially vacant" to Q1 "8 farms that are wholly or partially vacant," while also noting Q1 added "2 new tenants" to cash-basis rent recognition.
* Q&A focus remained anchored on variable rent timing and pistachio bonus mechanics, but Q1 featured more emphasis on monetizing vacant farms via "fallowing incentive programs, water leases, solar leases" than in Q4. (CFO Parrish)

RISKS AND CONCERNS

* "We've modified our leases so that we're taking a lot more risk in terms of growing" and "we're also currently recognizing revenue in a cash basis for leases with 4 tenants." (Founder, Chairman, CEO & President Gladstone)
* "March had an unusual hot spell right in the middle of pistachio bloom" and "some trees have aborted a significant percentage of their crop," while water costs could rise because "we may have an increase in water expense on a couple of ranches." (Executive Vice President Reiman)
* "We have about $155 million of loans with fixed rate terms that reset over the next year" and CEO Gladstone tied earnings sensitivity to rates, saying, "If you could lob a few calls into the people who set interest rates... that would help our earnings." (CFO Parrish; Founder, Chairman, CEO & President Gladstone)

FINAL TAKEAWAY

"We may consider selling some additional farms during the next few quarters" and "use most of the proceeds to pay down debt and buy back preferred stock." (Founder, Chairman, CEO & President David Gladstone) "We did add some unencumbered properties to certain existing and new credit facilities that increased our immediately available liquidity by about $50 million" and "we've bought back over $6 million of Preferred Stock so far in 2026 at an average repurchase yield of 7.4%." (CFO & Assistant Treasurer Lewis Parrish) "Our final crop revenue and profit numbers for 2025 should beat our expectations" even as "There's a long way to go in the growing season" for 2026 production. (Executive Vice President of West Coast Operations William Reiman)

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/land/earnings/transcripts]

MORE ON GLADSTONE LAND

* Gladstone Land Corporation (LAND) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4903415-gladstone-land-corporation-land-q1-2026-earnings-call-transcript]
* Gladstone Land's 7.2% Yielding Preferreds Benefitting From Buybacks [https://seekingalpha.com/article/4894744-gladstone-land-7-percent-yielding-preferreds-benefitting-from-buybacks]
* Gladstone Land Is Continuing To Turn Around [https://seekingalpha.com/article/4876549-gladstone-land-is-continuing-to-turn-around]
* Gladstone Land outlines $85M liquidity and plans for further farm sales amid lease restructuring [https://seekingalpha.com/news/4557173-gladstone-land-outlines-85m-liquidity-and-plans-for-further-farm-sales-amid-lease]
* Seeking Alpha’s Quant Rating on Gladstone Land [https://seekingalpha.com/symbol/LAND/ratings/quant-ratings]