LANDM - Gladstone Land: Preferred Shares Offer Good Value Before Fed Rate Cuts (Rating Upgrade)

2025-05-09 11:57:20 ET

Summary

• Gladstone Land is a farmland REIT focused on fresh produce and permanent crops farmland, primarily in California and Colorado.
• Preferred dividends exhibited good coverage by AFFO in 2024, with recent land sales likely to improve the REIT's liquidity.
• This should allow for a continuation of the preferred share repurchase program.
• The current yield on the series B and C preferred shares is above total returns of around 6.42% assumed by appraisers.
• Key risks to consider include trade turmoil impacting farmers' margins and slower Fed rate cuts.

Introduction

So far in 2025, Gladstone Land 's ( LAND ) Series B ( LANDO ) and Series C ( LANDP ) preferred shares have marginally outperformed the iShares Preferred and Income Securities ETF ( PFF ), delivering returns of ~2%:

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