Gladstone Land (NASDAQ: LAND) is one of a small number of farmland-focused real estate investment trusts (REITs). There's a lot to like about the company's focus and how it goes about investing in this niche. I wish I could love the REIT, but I just can't get myself to buy it. Here's why it might be better to put Gladstone Land on your watch list rather than your buy list today.
We all need to eat, and farmland is an integral part of meeting that need. Gladstone Land and Farmland Partners (NYSE: FPI) are the two notable REITs that offer investors a chance to put cash into the sector.
For more conservative investors, Farmland Partners is probably not a great option. For starters, a fight with a short-seller resulted in a dividend cut. Although this issue started way back in 2018 and the short-seller has admitted that the claims being made were not accurate, the company is still fighting the related class action lawsuits. Lawsuits are always a wild card, especially for a smaller company like Farmland partners, which sports a roughly $550 million market cap .
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I Want to Love This Farm REIT, but I Just Can't