LANDO · Gladstone Land Corporation

Gladstone Land reported a net loss of $4.3 million for Q1 2026, compared to net income of $15.1 million in the prior-year quarter, primarily due to a timing shift in earnings recognition from modified lease agreements and the absence of a $2.4 million termination fee and $15.4 million gain on dispositions recorded in the prior year. Total operating revenues decreased slightly by 1.5% to $16.6 million, as a $2.4 million reduction in fixed base cash rents was largely offset by a $4.4 million increase in participation rents, driven by an early pistachio bonus payment of approximately $4.9 million. Net income from crop sales on direct-operated farms was $1.9 million, also attributable to the early bonus. On a non-GAAP basis, AFFO improved 52.5% to $3.1 million ($0.08 per share) from $2.0 million ($0.06 per share), benefiting from higher participation rents and crop sales, lower interest expense due to debt repayments and preferred stock redemption, and a $1.4 million interest patronage refund. Management noted that a substantial majority of 2026 revenue and earnings is expected to be recognized in the fourth quarter due to the timing of participation rents. The company redeemed all outstanding Series D Term Preferred Stock for $60.6 million, reducing total indebtedness by 13.4% to $486 million. It also raised $36.7 million through common stock ATM sales and repurchased $0.3 million of preferred stock at a discount. Subsequent to quarter end, Gladstone entered a new $37 million revolving credit facility and filed a $1 billion universal shelf registration statement. CEO David Gladstone highlighted favorable market trends for pistachios and almonds, and noted the company's strong liquidity with over $145 million in immediately available capital and nearly 100% fixed-rate debt.