Overview

• U.S. farmland REIT's Q1 operating revenue fell 1.5% yr/yr; net loss reported

• Adjusted FFO for Q1 rose 52% yr/yr despite lower operating revenue

• Quarterly results impacted by timing shift to participation-based rents; majority of 2026 revenue expected in Q4

Outlook

• Gladstone Land expects most 2026 revenue and earnings to be recognized in the fourth qtr

• Company says market trends for pistachios and almonds remain favorable with strong demand

• Gladstone Land aims to return to traditional lease structures with fixed base rents

Result Drivers

• LEASE STRUCTURE SHIFT - Shift to participation-based rents on several farms delayed revenue recognition, with most 2026 revenue expected in Q4

• EARLY PISTACHIO BONUS - Participation rent and crop sales income rose due to an early bonus payment from the 2025 pistachio crop

• LOWER FIXED RENTS - Cash lease revenues fell due to reduced fixed base rents from farm sales, transitions to direct operations, and vacant properties

Company press release: ID:nACScrDMVa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Operating Revenues		$16.55 mln
Q1 EPS		-$0.24
Q1 Net Income		-$4.31 mln
Q1 Adjusted FFO		$3.10 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Gladstone Land Corp is $12.00, about 23.3% above its May 8 closing price of $9.73

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