Gladstone Land Participation Rents Reverse Second-Quarter Loss

The Tip Desk · November 11, 2026 · 4 min read

Adjusted FFO was $15.1 million, or $0.35 a share, after $16.8 million of participation rents as 2025 pistachio bonuses were recognized.

Gladstone Land Corporation (LAND) reported net income of approximately $11.0 million for the third quarter ended September 30, 2026, reversing a second-quarter net loss of about $8.5 million as participation rents and crop sales were recognized after harvest.

The farmland REIT said net income attributable to common stockholders was about $6.1 million, or $0.14 a share, versus a net loss of about $3.9 million, or $0.11 a share, a year earlier. Adjusted FFO was approximately $15.1 million, or $0.35 a share, compared with about $1.4 million, or $0.04 a share, in the year-ago quarter.

Total operating revenues were $31.47 million, up 77.0% from $17.79 million a year earlier. Participation rent revenue was approximately $16.8 million, versus about $5.4 million in the prior-year quarter, primarily from early recognition of the 2025 pistachio grower-partner bonus and higher almond and pistachio prices. Net profit from crop sales on direct-operated farms was about $2.9 million.

The swing from the second quarter was the quarter’s defining turn. Participation rents were about $201,000 in the second quarter, when crop results had not yet been known. Direct-farm crop-sale profit was about $589,000 in that period. The company said the 2026 crop-year lease modifications on three farms, plus management agreements covering two properties and four farms, shift revenue toward participation rents that are generally recognized once crop results are known, typically in the second half of the year. It said it expects a substantial majority of 2026 revenue and earnings in the second half, consistent with 2025.

Total cash lease revenues increased by about $11.0 million year over year, driven by an $11.4 million rise in participation rents, partially offset by a decrease in fixed base cash rents of about $433,000 from vacant and non-accrual properties and farms sold over the past year. Property operating expenses rose about $1.1 million, which the company attributed to supplemental water costs on one property, legal expenses to protect water rights on certain California farms, and costs on vacant, direct-operated, or non-accrual properties. Interest expense decreased primarily after the January 30, 2026 redemption of 5.00% Series D term preferred stock.

A non-cash impairment of about $2.2 million was recorded on four Arizona farms and one Washington farm, versus about $4.2 million on four Arizona farms in the second quarter. Two Florida farms totaling 617 gross acres were sold for about $3.2 million, producing an aggregate net loss of about $169,000. Nine amended or new leases were expected to add about $241,000 of annual net operating income.

The primary processor set an initial 2026 pistachio base price of $2.50 per pound, a 67% increase over the initial 2025 base, and a 2025 total of $2.90 per pound, 21% above the final 2024 crop price. President and CEO David Gladstone said the 2026 pistachio crop was already expected to be an “off” year and that yields were further reduced by a March heat event in California, and that pricing remains strong. He said almond market prices were generally 18% to 25% higher than a year earlier. Given uncertainty around 2026 crop results that will affect 2027 earnings, the Adviser voluntarily waived the incentive fee earned in the third quarter.

Cash flows from operations improved by about $6.4 million versus the year-ago quarter, to a $5.6 million outflow from a $12.0 million outflow. Total indebtedness declined to $492.7 million from $542.8 million a year earlier, including repayment of about $5.2 million of loans at a 3.47% effective rate. Occupancy was 97.7%; farms owned fell to 142 and acres owned to 98,065. ATM issuance slowed to 156,273 shares for about $1.5 million of net proceeds. Preferred-stock repurchases totaled 456,823 shares at an average $20.80, producing a gain of about $784,000.

Common-stock distributions remained $0.1401 per share for the quarter. After quarter-end, the company acquired an 180-acre Washington farm with an estimated fair value of about $2.8 million as partial satisfaction of a defaulted tenant’s obligations, and entered two solar option agreements covering up to 5,638 California acres with first-year option payments of about $331,000. It declared monthly common distributions of $0.0467 for October, November and December.