Gladstone Land Provides Update on Its Permanent Crop Portfolio
Gladstone Land (Nasdaq:LAND) has announced an update on its permanent crop portfolio. Executive VP Bill Reiman is leading a strategic review of the company's permanent cropland assets. The company acknowledges recent challenges in the sector, including:
1. Price downturn for crops like almonds, pistachios, and grapes over the past 12-18 months
2. Increased input and borrowing costs reducing farm margins
3. Year-round maintenance costs for permanent crops
To address these issues, Gladstone Land is exploring options such as:
- Restructuring leases with lower fixed rates but higher participation rent
- Forming joint ventures with growers
- Selling certain properties
Potential proceeds from asset sales could be used to invest in more stable income-generating assets or to pay off maturing debt.
Gladstone Land (Nasdaq:LAND) ha annunciato un aggiornamento sul suo portafoglio di coltivazioni permanenti. Il VP Esecutivo Bill Reiman sta conducendo una revisione strategica degli attivi di terreni agricoli permanenti dell'azienda. L'azienda riconosce le recenti sfide nel settore, tra cui:
1. Diminuzione dei prezzi per colture come mandorle, pistacchi e uva negli ultimi 12-18 mesi
2. Aumento dei costi di input e di prestito che riducono i margini agricoli
3. Costi di manutenzione durante tutto l'anno per le colture permanenti
Per affrontare queste problematiche, Gladstone Land sta esplorando opzioni come:
- Ristrutturare i contratti di locazione con tassi fissi più bassi ma affitto di partecipazione più elevato
- Formare joint venture con coltivatori
- Vendere alcune proprietà
I proventi potenziali dalle vendite di attivi potrebbero essere utilizzati per investire in asset generatori di reddito più stabili o per estinguere debiti in scadenza.
Gladstone Land (Nasdaq:LAND) ha anunciado una actualización sobre su cartera de cultivos permanentes. El VP Ejecutivo Bill Reiman está liderando una revisión estratégica de los activos de tierras agrícolas permanentes de la empresa. La compañía reconoce los desafíos recientes en el sector, incluyendo:
1. Caída de precios de cultivos como almendras, pistachos y uvas en los últimos 12-18 meses
2. Aumento de los costos de insumos y préstamos que reducen los márgenes agrícolas
3. Costos de mantenimiento durante todo el año para los cultivos permanentes
Para abordar estas cuestiones, Gladstone Land está explorando opciones como:
- Reestructurar los arrendamientos con tasas fijas más bajas pero con un alquiler de participación más alto
- Formar alianzas estratégicas con cultivadores
- Vender ciertas propiedades
Los posibles ingresos de las ventas de activos podrían utilizarse para invertir en activos generadores de ingresos más estables o para pagar deudas que están por vencer.
Gladstone Land (Nasdaq:LAND)는 자사의 영구 작물 포트폴리오에 대한 업데이트를 발표했습니다. 부사장 Bill Reiman이 회사의 영구 농경지 자산에 대한 전략적 검토를 이끌고 있습니다. 회사는 다음과 같은 최근의 업계 도전 과제를 인정하고 있습니다:
1. 지난 12-18개월 동안 아몬드, 피스타치오 및 포도와 같은 작물의 가격 하락
2. 농장 마진을 줄이는 투입 및 차입 비용 증가
3. 영구 작물에 대한 연중 유지 관리 비용
이 문제를 해결하기 위해 Gladstone Land는 다음과 같은 옵션을 모색하고 있습니다:
- 고정 요금은 낮추고 참여 임대료는 높이는 임대 계약 재구성
- 재배자와의 합작 투자 형성
- 특정 자산 판매
자산 판매로부터의 잠재적 수익은 보다 안정적인 수익을 창출하는 자산에 투자하거나 만기가 도래하는 부채를 상환하는 데 사용할 수 있습니다.
Gladstone Land (Nasdaq:LAND) a annoncé une mise à jour de son portefeuille de cultures permanentes. Le VP Exécutif Bill Reiman dirige un examen stratégique des actifs de terres agricoles permanentes de l'entreprise. La société reconnaît les défis récents dans le secteur, notamment :
1. Baisse des prix des cultures comme les amandes, les pistaches et les raisins au cours des 12-18 derniers mois
2. Augmentation des coûts d'intrants et d'emprunts réduisant les marges agricoles
3. Coûts d'entretien tout au long de l'année pour les cultures permanentes
Pour faire face à ces problèmes, Gladstone Land explore des options telles que :
- Restructurer les baux avec des taux fixes plus bas mais un loyer de participation plus élevé
- Former des coentreprises avec des cultivateurs
- Vendre certaines propriétés
Les produits potentiels de la vente d'actifs pourraient être utilisés pour investir dans des actifs générateurs de revenus plus stables ou pour rembourser des dettes arrivant à échéance.
Gladstone Land (Nasdaq:LAND) hat ein Update zu seinem Portfolio an Daueranlagen angekündigt. Der Executive VP Bill Reiman leitet eine strategische Überprüfung der dauerhaften Agrarflächen des Unternehmens. Das Unternehmen erkennt die jüngsten Herausforderungen im Sektor an, darunter:
1. Preisrückgang bei Kulturen wie Mandeln, Pistazien und Trauben in den letzten 12-18 Monaten
2. Steigende Input- und Finanzierungskosten, die die Gewinnmargen der Landwirte verringern
3. Jährliche Instandhaltungskosten für Daueranlagen
Um diese Probleme anzugehen, untersucht Gladstone Land Optionen wie:
- Umstrukturierung von Pachtverträgen mit niedrigeren Festmieten, jedoch höherer Beteiligungsmiete
- Bildung von Joint Ventures mit Anbauern
- Verkauf bestimmter Immobilien
Die potenziellen Erlöse aus dem Verkauf von Vermögenswerten könnten verwendet werden, um in stabilere, einkommensgenerierende Vermögenswerte zu investieren oder fällige Schulden zu tilgen.
- Strategic review of permanent cropland portfolio led by experienced executive
- Exploring options to adapt to market challenges and maintain dividend payments
- Considering restructuring leases to potentially increase participation rent
- Evaluating asset sales to invest in more stable income-generating properties
- Downturn in prices for key permanent crops (almonds, pistachios, grapes)
- Reduced farm margins due to increased input and borrowing costs
- Challenges in planning monthly dividends due to timing and volatility of permanent crop expenses and revenues
- Potential decrease in fixed base rental rates for some properties
MCLEAN, VA / ACCESSWIRE / September 23, 2024 / Gladstone Land Corporation (Nasdaq:LAND) (the "Company") announced that Executive Vice President (West Coast Operations), Bill Reiman, continues to lead the Company's strategic review and assessment of its permanent cropland portfolio. Mr. Reiman has been a member of the Company's acquisition and portfolio management team since 2013 and is a fifth-generation farmer, most recently serving as Chairman of the California Strawberry Commission and the Ventura County Agricultural Association.
As the Company has noted in recent press releases and earnings calls, prices of certain permanent crops have experienced a downturn over the last 12-18 months, including, but not limited to, almonds, pistachios, and grapes, that, when combined with increased input and borrowing costs, has reduced farm margins significantly. In addition, farmland planted to permanent crops have trees, vines, or bushes that must be maintained throughout the year, leading to additional year-round costs being incurred by the farmer or landowner. Since the Company continues to pay monthly dividends, the timing and volatility of the expenses and revenues associated with permanent crops makes it more difficult to plan for monthly dividends.
As a result, the Company continues to explore its options with certain of these permanent crop farms. Such options may include entering into new leases at decreased fixed base rental rates in exchange for increasing the participation rent component, looking at joint ventures with growers, or selling certain properties on the open market or at auctions. Should the Company sell any of its assets, uses of proceeds may include investing in new assets that the Company expects would generate more steady income and reduce overall portfolio risk or paying off debt as it matures.
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, 2023, as filed with the SEC on February 20, 2024, 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.
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, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 168 farms, comprised of approximately 112,000 acres in 15 different states and approximately 54,000 acre-feet (about 17.6 billion gallons) of water assets in California, valued at a total of approximately
For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any monthly dividend-paying Gladstone funds, please visit www.GladstoneCompanies.com.
For further information: Gladstone Land Corporation, (703) 287-5893
SOURCE: Gladstone Land Corporation
View the original press release on accesswire.com
FAQ
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