MCLEAN, VA - All eyes are on California as wildfire season continues on. With many fresh produce operators in the state, we at ANUK are always keeping our finger on the pulse of the industry, and Gladstone Land Corporation recently delivered a timely update. The land company reported its second quarter financial results for the quarter ending June 30, 2022, commenting on the state of its California operations.
"Given the cyclical nature of the second quarter—that is, no interest patronage and very little participation rent to record—we were pleased with the operating results for the quarter, as we were able to increase top-line revenues while keeping our property-operating expenses relatively flat when compared to the first quarter," said David Gladstone, President and Chief Executive Officer. "And while the year began slowly for us on the acquisition front, we have been able to complete over $60 million of new farm acquisitions over the past couple of months that we think will be accretive for shareholders for many years to come. We continue to look for new farms that meet our investment criteria; however, we also continue to act conservatively with our capital and be a bit more selective with acquisitions in light of the continued uncertainty surrounding the current economic environment. Regarding our California farmland, none of our farms are being impacted by the current wildfires there, and all of our farms continue to have sufficient water at this time. We are looking forward to finalizing the amount of participation rents for 2022 and reporting those numbers over the next two quarters."
During the second quarter, Gladstone acquired a 1,374-acre farm in California, as well as a 15-acre piece of land in Florida. These two purchases combined amounted to approximately $24.6 million. Additionally, Gladstone executed a new lease agreement in Colorado, which is expected to result in an increase in annual net operating income of approximately $170,000, according to a press release.
Other highlights from the report include:
- Net income for the quarter was approximately $613,000, compared to approximately $1.2 million in the prior quarter
- Total cash lease revenues increased by approximately $344,000, primarily driven by an increase in fixed base cash rents of approximately $323,000
- Cash flows from operations for the current quarter increased by approximately $4.2 million from the prior quarter
With this positive outlook, there is no doubt that Gladstone will continue to build out its footprint in California and beyond. Keep clicking back to ANUK for the latest.
