MCLEAN, VA - Gladstone Land (NASDAQ:LAND) Corporation (NASDAQ:LAND), a real estate investment trust specializing in farmland, announced today that Terry Lee Brubaker will retire as the company's Chief Operating Officer and from other key positions within the organization, effective December 2, 2024. Brubaker's retirement also includes stepping down as a director and executive officer of Gladstone Management Corporation, the company's investment adviser, as well as from his roles at Gladstone Administration, LLC, the company's administrator.
Following Brubaker's departure, Michael LiCalsi, who currently serves as the General Counsel and Secretary of Gladstone Land, and also holds positions as President, General Counsel, and Secretary of Gladstone Administration, will take on additional operational responsibilities. Concurrently, Gladstone Management will initiate a national search for a Chief Investment Officer to assume Brubaker's duties on the investment committee.
David Gladstone, President and Chief Executive Officer of Gladstone Land, commented on Brubaker's retirement, acknowledging his significant contributions to the company since its inception. Gladstone highlighted Brubaker's role in the company's growth and his unwavering dedication to the funds and shareholders.
Gladstone Land, founded in 1997, acquires and owns farmland and farm-related properties across major agricultural markets in the United States. As of now, the company boasts ownership of 168 farms, covering about 112,000 acres in 15 states, and nearly 54,000 acre-feet of water assets in California. The current value of these assets is estimated at approximately $1.5 billion. The company's portfolio primarily consists of properties conducive to growing annual row crops like berries and vegetables, as well as permanent crops such as almonds and apples, with a significant portion dedicated to organic or transitioning-to-organic farming.
The company is known for its monthly distributions to stockholders, having maintained a streak of 141 consecutive monthly cash distributions since its initial public offering in January 2013. The distributions have seen 35 increases over the past 39 quarters, with the current distribution rate at $0.0467 per share per month.
This announcement is based on a press release statement from Gladstone Land Corporation.
In other recent news, Gladstone Land Corporation reported a mixed financial performance in its third-quarter earnings call. The company cited challenges in the agricultural market and strategic lease adjustments as the primary reasons for this outcome. Despite a decrease in net income and a net loss to common shareholders, Gladstone Land remains optimistic about future participation rent income and farmland value appreciation due to inflation.
The company executed 21 new or amended leases, expected to increase net operating income by $309,000. However, a $20 million reduction in fixed base rents is anticipated over the next five quarters, as the company shifts to participation rents. Gladstone Land also plans to sell 11 blueberry farms in Michigan for approximately $5 million.
In terms of financial performance, the net income stood at $6,000, with a net loss to common shareholders of $5.8 million. Adjusted Funds From Operations (AFFO) decreased to $4.5 million from $5.4 million in the prior quarter. Despite these figures, the company maintains over $160 million in liquidity and expects minimal impact from rising interest rates.
These are the recent developments for Gladstone Land Corporation, which continues to navigate the complexities of the agricultural market with strategic lease adjustments and an optimistic outlook for future participation rent income.
InvestingPro Insights
As Gladstone Land Corporation (NASDAQ:LAND) prepares for a leadership transition with Terry Lee Brubaker's retirement, investors may find additional context from recent financial data and expert insights.
According to InvestingPro data, Gladstone Land's market capitalization stands at $433.85 million, reflecting its significant presence in the farmland REIT sector. The company's commitment to shareholder returns is evident in its dividend yield of 4.68%, which aligns with its track record of consistent monthly distributions mentioned in the article.
An InvestingPro Tip highlights that Gladstone Land "has raised its dividend for 10 consecutive years," underscoring the company's dedication to increasing shareholder value over time. This consistent dividend growth complements the article's mention of 35 distribution increases over the past 39 quarters.
Another relevant InvestingPro Tip indicates that the stock is "trading near 52-week low," with the price at 78.06% of its 52-week high. This could be of interest to value-oriented investors considering the company's stable business model in agricultural real estate.
For those interested in a deeper analysis, InvestingPro offers 6 additional tips that could provide further insights into Gladstone Land's financial health and market position. These additional tips, available with an InvestingPro subscription, could be particularly valuable as the company navigates this leadership change and continues to manage its extensive portfolio of farmland assets.
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