IYR - Gladstone Land: Good Results Good Potential But Overpriced

• Gladstone Land reported reasonably solid results, although the lack of participatory rent did reduce its revenues QoQ.
• The trust will likely deliver some slight growth over the next few quarters due to some lease renewals.
• The trust is not a particularly good way to hedge yourself against food price inflation but farmland still belongs in your portfolio.
• The 1.92% distribution yield is easily sustainable as the trust is generating more than sufficient cash.
• The trust is substantially overvalued at the current price and it may make sense to wait a bit for it to come down.

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