Gladstone Land Announces Third Quarter 2025 Results

Please notethat 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 / November 5, 2025 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") today reported financial results for the third quarter and year ended September 30, 2025. 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.

Third Quarter 2025 Activity:

• Timing Shift in Earnings Recognition: For the 2025 crop year, we modified lease agreements on six of our farms by reducing or eliminating fixed base rent amounts and, in some cases, providing cash lease incentives to certain tenants in exchange for significantly increasing the participation rent components. We are also operating two properties (encompassing four farms) under management agreements with third-party operators. Collectively, these eight properties (totaling ten farms) are referred to as our "Repositioned Farms," reflecting a temporary shift toward greater participation-based revenues. As a result, revenues from fixed base rents are expected to be significantly lower throughout the year, while participation rents are anticipated to be considerably higher. This change will delay the timing of revenue recognition and increase our reliance on participation rents, which are typically recognized once crop results are known, generally in the fourth quarter. Consequently, we expect the majority of our revenue and annual earnings for 2025 to be recognized in the fourth quarter.

• Portfolio Activity:

  • Property Sales: Sold two farms in Florida totaling 2,678 gross acres for $21.5 million, representing a 36% premium over the original purchase price and resulting in a net gain of approximately $6.0 million.

  • California Water Activity: Purchased 1,530 gross acre-feet of water at a total cost of approximately $583,000, or approximately $381 per gross acre-foot.

• Debt Activity - Loan Repayment: Repaid a $10.4 million maturing bond that bore interest at a stated rate of 4.45%.

• Equity Activity - Common Stock - ATM Program: Sold 122,743 shares of our common stock for net proceeds of approximately $1.1 million under our "at-the-market" program (the "ATM Program").

• Paid Distributions: Paid monthly cash distributions totaling $0.1401 per share of common stock during the quarter ended September 30, 2025.

Third Quarter 2025 Results:

Net income for the quarter was approximately $2.1 million, compared to approximately $6,000 in the prior-year quarter. Net loss attributable to common stockholders during the quarter was approximately $3.9 million, or $0.11 per share, compared to approximately $5.8 million, or $0.16 per share, in the prior-year quarter. AFFO for the quarter was approximately $1.4 million, or $0.04 per share, compared to approximately $4.5 million, or $0.13 per share, in the prior-year quarter. Common stock dividends declared were approximately $0.14 per share for both periods.

Total cash lease revenues decreased, primarily due to a $5.4 million reduction in fixed base cash rents. This decrease was largely driven by recent modifications to lease agreements on the Repositioned Farms and by ongoing vacancy and tenancy challenges. Participation rents increased by approximately $1.9 million, primarily due to the accelerated recognition of certain revenue amounts in the current year, as additional information became available earlier than usual, along with improved year-over-year pistachio pricing.

Aggregate related-party fees decreased by approximately $111,000 during the current quarter, primarily due to a lower base management fee resulting from farm sales over the past year. Excluding related-party fees, cash operating expenses decreased by approximately $30,000, driven by lower general and administrative costs, particularly reduced professional fees. These savings were partially offset by higher property operating expenses associated with farms that were vacant, direct-operated, or on non-accrual status, including increased property taxes and insurance premiums. Interest expense also declined as a result of debt repayments made over the past year.

Cash flows from operations for the current quarter decreased by approximately $10.7 million compared to the prior-year quarter, primarily due to lower cash receipts from fixed lease payments following the sale of nine farms completed to date in 2025. The decrease also reflects higher cash payments for water asset acquisitions and increased costs associated with direct farming operations on certain farms, which are currently capitalized as crop inventory.

Subsequent to September 30, 2025:

• Portfolio Activity:

  • Lease Activity: Executed two new lease agreements expected to increase annual net operating income by approximately $65,000, or 6.6%, compared to the prior leases.

  • Participation rents: In October 2025, we completed the pistachio harvest on three of our Repositioned Farms and received processor statements confirming final yields and minimum pricing. Based on these statements, we expect to recognize approximately $16.9 million of revenue in the fourth quarter of 2025 from these farms. In addition, we received the first cash installment from the processor, totaling approximately $5.1 million and representing 30% of the total guaranteed amount owed, in accordance with our contract terms.

• Equity Activity - Common Stock - ATM Program: Sold 959,432 shares of our common stock for net proceeds of approximately $8.8 million under the ATM Program.

• Fourth Quarter Distributions: Declared monthly cash distributions of $0.0467 per share of common stock for each of October, November, and December (totaling $0.1401 per share of common stock for the quarter).

Comments from David Gladstone, President and CEO of Gladstone Land: "With the approach we've taken on certain of our western permanent crop farms, our earnings for 2025 will be more dependent on participation rents than in prior years, with the large majority expected to be recognized in the fourth quarter. While it's still early in the harvest season, initial reports we've received have been positive. Market trends for pistachios and almonds, the crops to which we are most exposed within this group, also remain favorable, with average pricing up approximately 15% and 24%, respectively, year over year. We view these lease modifications as a temporary measure and continue to aim for a return to standard lease structures that include fixed base rents. If we are unable to reach satisfactory lease terms with tenants on these farms in the near future, we may also consider selling certain of these farms. In addition, we are evaluating the potential sale of other select properties within our portfolio. In the meantime, we remain focused on enhancing long-term farm viability by pursuing opportunities to acquire additional water resources at below-market prices, further strengthening water security for our farms and growers. Our balance sheet remains in excellent condition, with nearly 100% of our outstanding debt held at fixed interest rates. We also continue to maintain strong liquidity, with over $170 million in immediately-available capital, including $25 million in cash on hand, and more than $145 million in unencumbered properties that could be pledged as additional collateral, if needed."

Quarterly Summary Information
(Dollars in thousands, except per-share amounts)