Gladstone Land (LAND) Stock: Monthly Dividend vs AFFO, Debt

The dividend against the company's own measure

Gladstone Land reports three non-GAAP measures: FFO (the NAREIT definition), core FFO (CFFO) and adjusted FFO (AFFO). AFFO strips out straight-lined rent and some non-cash items, so it is the closest the company comes to a cash-earnings figure. The monthly payment has been $0.0467 for a long run of months; the August 11, 2026 earnings release gives the current rate as $0.5604 a year.

Source: the FFO, CFFO and AFFO reconciliation in the 10-K for 2025 and its cash-flow statement. The ratios divide cash distributions paid on common stock ($19.789 million, $20.095 million, $20.466 million) by AFFO or FFO available to common stockholders. AFFO is already after preferred dividends, which were $24.008 million in cash in 2025. The preferred stock is the larger fixed claim: at June 30, 2026 the Series B, C and E preferred had a $386.6 million liquidation preference (our arithmetic), costing about $22.9 million a year on the Series B and C alone at 6.00%.

The reading is narrow. The payout has been above 100% of AFFO for two years running, and the board has not changed the rate. That is a fact about 2024 and 2025 earnings, and the company says the reason is lease restructuring, not a lasting fall in farm income. Whether it is right is what the next two fourth quarters will show.

Why the quarters swing: participation rent and pistachios

In 2025 the company changed leases on six farms, cutting or removing fixed rent and in some cases paying tenants cash incentives in exchange for much higher participation rent, which is a share of crop revenue. It also runs two properties (four farms) itself through third-party managers. It calls these the “Repositioned Farms.” Participation rent is usually booked once crop results are known, in the fourth quarter.

Source: the quarterly summary tables in the earnings releases for Q3 2025 (accession 0001495240-25-000030), Q4 2025 (0001495240-26-000008), Q1 2026 (0001495240-26-000017) and Q2 2026 (0001495240-26-000023). Q1 and Q2 2025 values are the prior-year columns of the 2026 releases. Q2 2025 revenue is the prior-year column of the Q2 2026 release.

Fixed lease payments fell from $73.952 million in 2024 to $51.180 million in 2025, down 30.8%, while participation rents rose from $9.401 million to $20.031 million. In the second quarter of 2026 participation rent was only $201,000, against $142,000 a year earlier. The first quarter of 2026 included about $4.9 million of participation rent, mostly an early partial bonus payment from a pistachio processor for the 2025 crop, which the company said would normally arrive in late 2026 or early 2027.

On the outlook the company is explicit. The August release says:

“We view these lease modifications as temporary and continue to target a return to more traditional lease structures that include fixed base rents.”

It also says the 2026 pistachio crop is expected to be an “off” year, with yields hit further by a March heat event, offset by a 67% higher initial base price from its main processor. We have no way to verify yields or the final settlement from the filings; the fourth-quarter report will be the first evidence of the 2026 crop.

Cash flow: earned versus paid

AFFO is an accrual-based figure, so the company's own cash-flow statement is a useful cross-check.

Source: the cash-flow statements in the 2025 10-K and the June 30, 2026 10-Q. 2023 and 2024 ratios are our arithmetic from the 10-K columns. In 2025 a large part of the crop revenue was still to be collected: the company said the majority of it would arrive in 2026, so 2025 cash flow understates and 2026 cash flow overstates the underlying run rate. Over 2025 plus the first half of 2026, operating cash flow was $36.219 million against $68.119 million paid (our arithmetic), a gap that farm sale proceeds and equity sales helped fill (our reading).

Equity issuance, buybacks and where the money goes

The company sold 5,121,655 common shares in the first half of 2026 for $51.350 million gross and redeemed all of its Series D term preferred stock for $60.375 million in January 2026. Its new at-the-market program allows up to $500 million of common stock; a separate shelf registration declared effective on April 23, 2026 allows up to $1.0 billion of securities over three years.

Selling common stock above book value adds to book value per share, but the higher share count raises the total common dividend: $0.5604 on 43.1 million shares is about $24.2 million a year, against $17.296 million of AFFO in the latest four quarters (our arithmetic). The company is also buying back its own 6.00% preferred shares: 419,313 Series B and C shares in the second quarter at an average $20.61, and 214,160 more after June 30, under a new $20 million (Series B) and $35 million (Series C) authorization announced on July 15, 2026. Preferred shares bought below their $25 liquidation preference cut a fixed claim, but the cash comes from the same equity sales.

Debt: low fixed rates, a big 2029 wall

At the 10-Q date the company had $466.666 million of scheduled notes and bonds principal and $21.1 million drawn on lines of credit. Approximately 95.7% of its borrowings were at fixed rates, at an effective rate of 3.45% for another 2.3 years, after interest patronage (refunds from Farm Credit lenders at their discretion, $1.403 million for 2025 borrowings). Available liquidity was about $124.4 million, plus $112.0 million of unencumbered farms that could be pledged.

Source: the debt-service table in the June 30, 2026 10-Q. The company also entered a $37.0 million revolver with Farm Credit of Central Florida through April 1, 2030, which carries a variable rate of prime less 0.50% before patronage. Interest rate swaps with a notional of $62.2 million hedge part of the variable exposure. Interest expense in the second quarter of 2026 was $4.664 million. The 3.45% average is far below current mortgage rates, so the rate at which the 2027-2029 loans can be replaced will matter more than the current cost.

Tenants, states and the farms that are not paying cleanly

Tenant A leased six farms and accounted for 13.8% of lease revenue in the first half of 2026 (10.7% in 2025, when it leased nine farms). California supplied 69.0% of lease revenue and Florida 16.6%. No other tenant or state exceeded 10%.

At the 10-Q date, 10 farms were wholly or partially vacant, four were direct-operated and 11 farms leased to four tenants were on a cash basis because of doubts about collection. In the second quarter the company booked a $4.194 million impairment on four farms in Yuma County, Arizona, written down to an agreed sale price, and after June 30 it sold two Florida farms (617 acres) for about $3.2 million at a net loss of about $159,000. In 2025 it sold 13 farms for about $95.4 million with a net gain of about $21.3 million. Farms sold are income not coming back: owned farms fell from 157 at the end of 2024 to 144 at June 30, 2026.

Source: the lease-expiration table in the June 30, 2026 10-Q (the revenue column is labelled in the filing with the three months ended March 31, 2026). Agricultural leases are short, so renewal risk arrives every year.

What changed in the latest quarter, and what comes next

• Q2 2026 (filed August 11, 2026): AFFO of negative $1.585 million, a $4.194 million impairment, a $0.14 quarterly distribution that stayed unchanged, higher almond prices, and seven amended or new leases that the company expects to lower annual net operating income by about $931,000.
• Since June 30: seven more lease actions expected to add about $297,000 of annual net operating income, the two Florida sales, a repaid $2.8 million loan, and the new preferred buyback authorization.
• Next filing: the Q3 2026 10-Q and release. We found no announced date. In 2025 the Q3 release and 10-Q were filed on November 5, so early November is likely (our estimate, not a company statement). Our farmland comparison sets LAND beside Farmland Partners, the platforms and the Regulation A farmland REIT.

What a holder can do with this

Compare the two numbers the company controls: the monthly distribution and AFFO over a full year, not a quarter. For 2026 the test is the fourth-quarter release, which should show whether participation rents and pistachio settlements bring full-year AFFO near the roughly $24 million that the current common dividend costs on today's share count (our arithmetic). Watch three other lines in the same filing: how many farms are still on non-accrual or vacant, how much common stock was sold and at what price, and the refinancing of the 2027-2029 maturities.

For other monthly payers on our site, see how Realty Income covers its dividend, and for sister companies in the Gladstone family, Gladstone Capital (GLAD) and Gladstone Investment (GAIN). LAND is a listed REIT, so a holder can sell on the exchange; the exit price is the market price, not a private NAV. Our analysis of non-traded REIT listings shows why that difference matters. This is analysis of public documents, not investment, legal or tax advice.

Frequently asked questions

Sources: Gladstone Land Corporation (CIK 1495240) Form 10-Q for June 30, 2026; Form 10-K for 2025; earnings releases furnished on Form 8-K for Q2 2026, Q1 2026, Q4 2025 and Q3 2025; the July 15, 2026 preferred repurchase press release and January 6, 2026 Series D redemption press release; closing prices from the Yahoo Finance chart API, retrieved October 19, 2026. Sources are saved with the downloadable research dataset; computed ratios are identified as our arithmetic.