Summary
Gladstone Land posted improved results from the previous quarter.
There is no need to worry about the revenue decline as this was due to the company actually securing a tenant for a farm that it was forced to operate.
The company posted a very nice gain on sale and was able to avoid taxes by rolling it into more valuable properties.
The dividend appears to be sustainable again, which was a big problem that the company had in the previous quarter.
Based on likely renewals, next year should be somewhat better for the company.
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On Thursday, November 8, 2018, farmland-focused real estate investment trust Gladstone Land (LAND) reported its third quarter 2018 earnings results. At first glance, these numbers were relatively solid as the company managed to beat the expectations of its analysts on top-line revenues, although they were down by 29.6% quarter over quarter. A closer look at the company's results does indeed reveal that it performed fairly well during the period, especially in the area of funds from operations. Overall, the firm certainly shows that there are some very real opportunities in farmland and provides ordinary investors with a way to take advantage of these opportunities.
As my long-time readers are no doubt already well aware, it is my usual practice to share the highlights from a company's earnings report before delving into an analysis of its results. This is because these highlights provide background for the remainder of the article as well as serve as a framework for the resultant analysis. Therefore, here are the highlights from Gladstone Land's third quarter 2018 earnings results:
