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Gladstone Land: Own The Farm While Collecting An Attractive Dividend

Published Wed, 11 Jan 2017 13:59:36 -0500 on Seeking Alpha

Brief Business Description
Gladstone Land (Nasdaq: LAND) operates as a real estate investment trust (REIT) focused on purchasing and leasing farmland within the United States. The company has been focused on increasing its tenant base and increasing the diversity of its farm portfolio, including a variety of crops. It currently owns 57 farms, which were valued in the most recent quarter at $386 million. Gladstone Land has a large amount of financing available to pursue acquisitions through both equity and/or debt issuances, and through its $150 million term loan MetLife facility. We view the company's ability to utilize the capital markets as a competitive advantage, given many of its competitors are small private investment vehicles. Gladstone Land currently trades for a market capitalization of $110 million with a trailing 12-month revenue of roughly $16 million.

Source: Gladstone Land Investor Relations
Investment Overview
Gladstone Land offers investors an opportunity to own farmland throughout the United States. The company does not manage the farms but leases them to farmers on a triple net lease basis. We view this strategy as favorable, as it provides investors with a greater ability to forecast revenue, as most of these leases are for greater than five years with annual escalation clauses.
The company also is benefiting from numerous favorable demographic trends. According to real estate website Wildlife Properties, U.S. farmland has been... Read more