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Please note the limited information that follows in this press release is not adequate for making an informed investment judgment.
MCLEAN, Va., May 5, 2014 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq:LAND) (the "Company") today reported financial results for the first quarter ended March 31, 2014. A description of funds from operations ("FFO"), a relative non-GAAP (generally accepted accounting principles in the United States) financial measure, is located at the end of this press release. All per-share references are to fully-diluted, weighted average shares of common stock unless otherwise noted. Please read the Company's Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which can be retrieved from the SEC's website at
www.sec.gov or from the Company's website at
For and As of the Quarters Ended
March 31, 2014
December 31, 2013
Change ($ / #)
Total operating revenue
Total operating expenses
Net income before income taxes
Income tax provision
Net income (loss) available to common stockholders
Real estate and intangible depreciation and amortization
Income tax provision
Pre-tax funds from operations available to common stockholders
Share and Per Share Data:
Weighted average common shares outstanding - basic and diluted
Net income (loss) per weighted average common share - basic and diluted
Pre-tax FFO per weighted average common share - basic and diluted
Cash dividends declared per common share
Balance Sheet Data:
Real estate and intangibles, net
Total stockholders' equity
Total common shares outstanding
Highlights for the Quarter:
Project Completion: Completed a cooler upgrade and expansion at a total cost of $446,000 and will earn additional rent on this amount at an initial rate of 8.5%;
Lease Activity: Executed a lease with a new tenant on a property where the existing lease is set to expire in 2014. The new lease is for nine years and will commence upon expiration of the existing lease in November 2014. The new lease provides for an increase in minimum annualized GAAP straight-line rental income of 21% over the existing lease; and
Declared Distributions: Declared and paid monthly cash distributions of $0.03 per share of common stock for each of January, February and March.
First Quarter 2014 Results: Pre-tax FFO increased for the three months ended March 31, 2014, as compared to the three months ended December 31, 2013. The Company saw an increase in operating revenues as a result of the seven farms it acquired during the three months ended December 31, 2013; however, it also experienced an increase in operating expenses. The increase in operating expenses was primarily due to an increase in the management fee paid to our Adviser and additional stockholder-related expenses incurred relating to the annual report and proxy. The increase in the management fee paid to our Adviser was expected, as, per our advisory agreement, the fee was limited in 2013 to 1% of stockholders' equity, less any uninvested proceeds from our initial public offering. However, beginning in 2014, the fee increased to 2% of stockholders' equity, and uninvested proceeds are no longer excluded. Other expenses also increased for the three months ended March 31, 2014, as compared to the three months ended December 31, 2013, due to the interest incurred on increased borrowings under our mortgage note payable.
Net income available to common stockholders for the three months ended March 31, 2014, was $20,918, or $0.00 per share, compared to a net loss available to common stockholders for the three months ended December 31, 2013, of $87,092, or $0.01 per share. This increase was primarily due to the impact on the prior-year period of recognizing $2.1 million of income taxes on a deferred intercompany gain related to land transfers in prior years. These income taxes will be triggered and become due upon the Company's conversion to a REIT, which management expects to be effective for the tax year ended December 31, 2013; thus, such taxes were recorded during 2013. A reconciliation of Pre-tax FFO to net income for both the three months ended March 31, 2014, and December 31, 2013, which the Company believes is the most directly-comparable GAAP measure to Pre-tax FFO, and a computation of basic and diluted Pre-tax FFO and basic and diluted net income per weighted-average share of common stock is set forth in the Summary Information table above.