No surprise to reader's of these articles that I like farmland, timberland, farm products and farm machinery. Gladstone Land is no exception. This company is still growing into its stated mission and is in the process of filling out its portfolio of owned farms so this company is still at the beginning of its wealth creation phase.
I own stock in Gladstone Land and continue to add to this position as often as I can through the use of dividend reinvestment and direct purchases in the open market. I believe this company continues to be a great company and an obvious great investment if bought at beneficial prices.
The central idea behind Gladstone Land is to accumulate farmland and then lease that land back to farmers. Owning the farmland provides Gladstone Land with the opportunity to gain value from the land itself. Property values of farmland within the United States generally increases over the long term while having a lower than historical debt to equity and debt to asset ratio. In addition, values have risen during both periods of increasing and decreasing interest rates. During the financial crisis of 2008, the NCREIF Farmland Index generated robust gross cumulative gains while the S&P 500 Index and the MSCI World Index generated substantial losses.
As a result, I am completely convinced that any investment in this company is a great investment, but it has to be entered into as a long term investment. And by long term I mean years, not months. Anyone with a shorter term horizon will most likely become disillusioned and/or disappointed with the total return. So no one should be surprised.
That said, this may just be one of the best investments of the decade. Land by itself has traditionally increased at approximately 6% per year, so it's a great preserver of purchasing power over time, much like gold bullion tends to be over time. In certain circumstances and as the general population encroaches upon today's farmland, the value of the land normally increases exponentially as its use is converted into lots for homes, businesses, golf courses, shopping malls, etc.
And while an investor in Gladstone Land waits for the value of the underlying land (stock) to increase, the company distributes a very generous and growing dividend.
I own stock in Gladstone Land and continue to add to this position as often as I can through the use of dividend reinvestment and direct purchases in the open market. I believe this company continues to be a great company and an obvious great investment if bought at beneficial prices.
The central idea behind Gladstone Land is to accumulate farmland and then lease that land back to farmers. Owning the farmland provides Gladstone Land with the opportunity to gain value from the land itself. Property values of farmland within the United States generally increases over the long term while having a lower than historical debt to equity and debt to asset ratio. In addition, values have risen during both periods of increasing and decreasing interest rates. During the financial crisis of 2008, the NCREIF Farmland Index generated robust gross cumulative gains while the S&P 500 Index and the MSCI World Index generated substantial losses.
As a result, I am completely convinced that any investment in this company is a great investment, but it has to be entered into as a long term investment. And by long term I mean years, not months. Anyone with a shorter term horizon will most likely become disillusioned and/or disappointed with the total return. So no one should be surprised.
That said, this may just be one of the best investments of the decade. Land by itself has traditionally increased at approximately 6% per year, so it's a great preserver of purchasing power over time, much like gold bullion tends to be over time. In certain circumstances and as the general population encroaches upon today's farmland, the value of the land normally increases exponentially as its use is converted into lots for homes, businesses, golf courses, shopping malls, etc.
And while an investor in Gladstone Land waits for the value of the underlying land (stock) to increase, the company distributes a very generous and growing dividend.
 Gladstone Land Weekly Chart |  Gladstone Land Dividend History |
Gladstone Land Corporation, an externally-managed agricultural real estate investment trust, owns and leases farmland to corporate and independent farmers in the United States. The company’s farms allow its tenants to grow row crops, such as lettuce and tomatoes; and berries comprising strawberries and raspberries. As of December 28, 2015, it owned 43 farms covering an area of 16,810 acres located in 6 states across the United States. The company also leases a parcel on its farm near Oxnard, California to an oil company. Gladstone Land Corporation was founded in 1997 and is based in McLean, Virginia.
(Summary) (Company) (Chart)
Gladstone Land (LAND) declares a $0.043/share monthly dividend, a 1.2% increase from its prior dividend of $0.0425. The forward yield is now 4.63%. Dates are below:
Payable Jan. 31; for shareholders of record Jan. 20; ex-div Jan. 18
Payable Feb. 28; for shareholders of record Feb. 16; ex-div Feb. 14.
Payable Mar. 31; for shareholders of record Mar. 22; ex-div Mar. 20.
| 3 January 2016 Price $8.65 1yr Target $12.80 Analysts 5 Dividend $0.48 Payout Ratio 1600% 1yr Cap Gain 47.97% Yield 5.54% 1yr Tot Return 53.51% P/E 288.33 PEG 28.83 Beta --- EPS (ttm) $0.03 EPS next yr $0.13 EPS next 5yr 10.00% 1yr Price Support $1.30 Market Cap $86.50 Mil Revenues $10.80 Mil Earnings $0.30 Mil Profit Margin 2.77% Quick Ratio --- Current Ratio --- Debt/Equity 1.97 1yr EarnGR --- 3yr EarnGR --- 5yr EarnGR --- 1yr DivGR 200.00% 3yr DivGR --- 5yr DivGR --- ROA 0.20% ROE 0.50% | 15 January 2017 Price $11.88 1yr Target $13.15 Analysts 5 Dividend $0.52 Payout Ratio 650.00% 1yr Cap Gain 10.69% Yield 4.37% 1yr Tot Return 15.06% P/E 154.55 PEG 15.45 Beta 0.97 EPS (ttm) $0.08 EPS next yr $0.02 Forward P/E 517.39 EPS next 5yr 10.00% 1yr Price Support $0.20 Market Cap $116.98 Mil Revenues $15.8 Mil Earnings $0.70 Mil Profit Margin 4.43% Quick Ratio --- Current Ratio --- Debt/Equity 2.82 1yr RevGR 65.65% 3yr RevGR 87.72% 5yr RevGR --- 1yr EarnGR --- 3yr EarnGR 90.05% 5yr EarnGR --- 1yr DivGR 29.16% 3yr DivGR --- 5yr DivGR --- ROA 0.30% ROE 1.00% |
Investing in Farmland is investing in America.
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