Gladstone Land Corporation (Nasdaq: LAND) reported its financial results for the third quarter ended September 30, 2026, in a filing released on November 10, 2026. The company highlighted a significant shift in revenue recognition timing for the 2026 crop year, driven by modified lease agreements on three farms and management agreements on two properties. These arrangements, referred to as "Repositioned Farms," rely on participation rents and crop sales, which are typically recognized in the second half of the year. Consequently, the company expects to recognize the majority of its 2026 revenue and earnings during this period.
A primary driver of the quarter's performance was crop pricing. The primary processor announced an initial base price of $2.50 per pound for split in-shell pistachios for the 2026 crop, a 67% increase over the initial 2025 crop base price. The company also noted that the minimum grower-partner bonus payment for the 2025 pistachio crop totaled $2.90 per pound, representing a 21% increase over the final 2024 crop price. Despite significantly lower yields on the 2026 pistachio crop due to a March heat event, the company expects pricing to remain strong in the near term.
Portfolio activity during the quarter included the execution of nine amended or new lease agreements expected to increase annual net operating income by approximately $241,000. The company sold two farms in Florida totaling 617 gross acres for approximately $3.2 million, resulting in an aggregate net loss of approximately $169,000. Additionally, the company recorded approximately $16.8 million of participation rent revenue and net profit from crop sales of approximately $2.9 million. A non-cash impairment charge of approximately $2.2 million was recorded related to four farms in Arizona and one farm in Washington.
Regarding capital structure, the company repaid approximately $5.2 million of loans with an effective interest rate of 3.47%. Under its equity activity, the company issued and sold 156,273 shares of common stock for net proceeds of approximately $1.5 million under its ATM program. The company also repurchased a total of 456,823 shares of its 6.00% Series B and Series C Cumulative Redeemable Preferred Stock at an average price of $20.80 per share, resulting in a gain of approximately $784,000.
For the quarter, net income attributable to common stockholders was approximately $6.1 million, or $0.14 per share, compared to a net loss of approximately $3.9 million, or $0.11 per share, in the prior-year quarter. Adjusted Funds From Operations (AFFO) available to common stockholders was approximately $15.1 million, or $0.35 per share, compared to approximately $1.4 million, or $0.04 per share, in the prior year.
Subsequent to the quarter-end, Gladstone Land acquired one 180-acre farm in Washington as partial satisfaction of obligations owed by a tenant in default. The company also entered into two solar option agreements granting a third-party company options to purchase up to 5,638 acres of farmland in California for potential solar energy development, with aggregate annual option payments beginning at approximately $331,000. The company declared monthly cash distributions of $0.0467 per share of common stock for each of October, November, and December.
