MCLEAN, Va., March 27, 2013 /PRNewswire/ -- Gladstone
Land Corporation (NASDAQ: LAND), or the Company, today reported
financial results for the fourth quarter and year ended
December 31, 2012. A
description of funds from operations, or 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
Annual Report on Form 10-K, or the Form 10-K, filed today with the
U.S. Securities and Exchange Commission, or the SEC, which can be
retrieved from the SEC's website at www.sec.gov or from the
Company's website at www.GladstoneLand.com. The Company
completed its initial public offering in January 2013.
(Logo:
http://photos.prnewswire.com/prnh/20130128/PH49913LOGO)
Summary Information:
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As of
and For the Quarters Ended December 31,
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As of
and For the Years Ended December 31,
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2012
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2011
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2012
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2011
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Operating Data:
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Total
operating revenue
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$
916,757
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$
781,605
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$
3,390,594
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$
2,964,082
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Total
operating expenses
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(373,811)
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(334,538)
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(1,488,979)
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(1,681,254)
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Other
expense
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(286,830)
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(224,982)
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(1,000,923)
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(1,269,098)
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Net income
before income taxes
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256,116
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222,085
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900,692
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13,730
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Provision
for income taxes
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(85,396)
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(121,485)
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(300,319)
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(7,511)
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Net
income
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$
170,720
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$
100,600
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$
600,373
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$
6,219
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Real
estate depreciation and amortization
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168,223
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119,439
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474,480
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505,568
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Funds from
operations (1)
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$
338,943
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$
220,039
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$
1,074,853
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$
511,787
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Share
and Per Share Data:
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Earnings
per weighted average common share - basic and diluted
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$
0.06
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$
0.04
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$
0.22
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$
0.00
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FFO per
weighted average common share - basic and diluted
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$
0.12
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$
0.08
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$
0.39
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$
0.19
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Weighted
average common shares outstanding - basic and diluted
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2,750,000
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2,750,000
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2,750,000
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2,750,000
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Balance
Sheet Data:
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Real
estate, gross
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$
39,678,968
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$
32,399,715
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$
39,678,968
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$
32,399,715
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Total
assets
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40,500,901
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32,768,277
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40,500,901
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32,768,277
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Mortgage
notes payable and borrowings under line of credit
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30,817,880
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24,133,000
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30,817,880
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24,133,000
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Total
stockholders' equity
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8,136,726
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7,536,353
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8,136,726
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7,536,353
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Total
common shares outstanding
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2,750,000
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2,750,000
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2,750,000
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2,750,000
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(1) Funds From Operations ("FFO") is a term
approved by the National Association of Real Estate Investment
Trusts ("NAREIT").
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Highlights of 2012, the Company:
- Acquired Properties: Purchased four farms and one
cooling facility in two separate transactions, comprised of an
aggregate of 343 acres in Florida,
for $7.4 million;
- Issued Debt: Borrowed a total of $8.7 million in mortgages from our Metropolitan
Life Insurance Company, or MetLife, mortgage facility. Proceeds
were used to repay a portion of our outstanding balance under our
line of credit and to acquire the four farms in 2012;
- Extended Lease: Extended the term of one lease for an
additional period of three years, through October 2015; and
- Obtained New Line of Credit: Obtained a new,
$4.8 million revolving line of credit
facility with MetLife that matures in April
2017.
2012 Results: FFO for the three months and year ended
December 31, 2012, was $0.3 million and $1.1
million, or $0.12 and
$0.39 per share, a 54.0% and 110.0%
increase, respectively, when compared to the same periods one
year ago. FFO increased primarily due to the increase in
operating revenues derived from the four farms acquired in 2012
coupled with a decrease in professional fees from fees capitalized
in 2010 and subsequently expensed in 2011 related to the
preparation of the registration statement for our previously
proposed public offering that was later withdrawn and a loss on
early extinguishment of debt that was recognized in 2011. This was
partially offset by an increase in interest expense from the
mortgage debt issued in 2012 coupled with an increase in
administration fees related to additional time spent on the
Company's initial public offering and an increase in due diligence
costs incurred during 2012 relating to acquisitions and potential
acquisitions.
Net income for the three months and year ended December 31, 2012, was $0.2 million and $0.6
million, or $0.06 and
$0.22 per share, respectively,
compared to net income for the three months and year ended
December 31, 2011, of $0.1 million and $0.001
million, or $0.04 and
$0.00 per share,
respectively. A reconciliation of FFO to net income for
the three months and years ended December
31, 2012 and 2011, which the Company believes is the most
directly comparable GAAP measure to FFO, and a computation of basic
and diluted FFO per weighted average share of common stock and
basic and diluted net income per weighted average share of common
stock is set forth in the Summary Information table above.
Comments from the Company's Chief Executive Officer,
David Gladstone: "Our financial
results for the year reflect increased revenues from our farm
acquisitions made during 2012. We are excited about our
initial public offering, which closed in January 2013, and are working hard to deploy this
additional capital in 2013. We also continue to focus on
maintaining our portfolio and working with our existing tenants to
extend leases that are scheduled to mature in the next few years.
We are looking forward to an active 2013."
Subsequent to the End of the Year, the Company:
- Priced and Closed Initial Public Offering: Issued
3,780,264 shares of common stock in connection with its initial
public offering, resulting in net proceeds of $51.5 million; and
- Declared Distributions: Declared monthly cash
distributions of $0.04 per share on
its common stock, for each of February and March 2013.
Conference Call: The Company will hold a conference call
on Thursday, March 28, 2013, at
8:30 a.m. EDT to discuss its earnings
results. Please call (800) 860-2442 to enter the
conference. An operator will monitor the call and set a queue
for any questions. A conference call replay will be available
beginning one hour after the call and will be accessible through
April 29, 2013. To hear the
replay, please dial (877) 344-7529 and use conference number
10025946. The live audio broadcast of the Company's quarterly
conference call will also be available online at the Company's
website, www.GladstoneLand.com. The event will also be
archived and available for replay on the Company's website through
May 30, 2013.
About Gladstone Land: Gladstone Land is a real estate
investment company that pays monthly dividends to its stockholders.
Gladstone Land invests in farmland located in major agricultural
markets in the United States
("U.S.") that it leases to corporate and independent farmers. The
company currently owns twelve farms (appraised at approximately
$75.5 million), predominantly
concentrated in locations where its tenants are able to grow row
crops, such as berries, lettuce and melons, which are planted and
harvested annually or more frequently. The company also may
acquire property related to farming, such as storage facilities
utilized for cooling crops, processing plants, packaging facilities
and distribution centers. Additional information can be found
at www.gladstoneland.com.
About the Gladstone Companies: Information on the
business activities of all the Gladstone funds can be found at
www.gladstonecompanies.com.
Investor Relations: For Investor Relations inquiries
related to any of the monthly dividend paying Gladstone funds,
please visit www.gladstone.com.
Non-GAAP Financial Measure – FFO: The National
Association of Real Estate Investment Trusts ("NAREIT") developed
FFO as a relative non-GAAP supplemental measure of operating
performance of an equity REIT in order to recognize that
income-producing real estate historically has not depreciated on
the basis determined under GAAP. FFO, as defined by NAREIT,
is net income (computed in accordance with GAAP), excluding gains
(or losses) from sales of property and impairment losses on
property, plus depreciation and amortization of real estate assets,
and after adjustments for unconsolidated partnerships and joint
ventures. FFO does not represent cash flows from operating
activities determined in accordance with GAAP and should not be
considered an alternative to net income as an indication of its
performance or to cash flow from operations as a measure of
liquidity or ability to make distributions. The Company
presents basic and diluted FFO per share as calculations of FFO
available to common stockholder divided by the weighted average
common shares outstanding. The Company believes that FFO per
share provides investors with an additional context for evaluating
its financial performance and as a supplemental measure to compare
it to other REITs; however, comparisons of its FFO to the FFO of
other REITs may not necessarily be meaningful due to potential
differences in the application of the NAREIT definition used by
such other REITs. To learn more about FFO, please refer to
the Company's Form 10-K for the year ended December 31, 2012, as filed with the SEC
today.
Certain statements in this press release, including the
Company's ability to maintain or grow its portfolio and FFO,
renegotiate or extend leases, and deploy additional capital are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements inherently involve certain risks and
uncertainties, although they are based on the Company's current
plans that are believed to be reasonable as of the date of this
press release. Factors that may cause actual results to
differ materially from these forward-looking statements
include, but are not limited to, the Company's ability to invest
proceeds from its initial public offering; the duration of, or
further downturns in, the current economic environment; the
performance of its tenants; the impact of competition on its
efforts to renew existing leases or re-lease real property; and
significant changes in interest rates. Additional factors
that could cause actual results to differ materially from those
stated or implied by its forward-looking statements are disclosed
under the caption "Risk Factors" of its Form 10-K for the fiscal
year ended December 31, 2012, as
filed with the SEC on March 27,
2013. The Company cautions readers not to place undue
reliance on any such forward-looking statements, which speak only
as of the date made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
SOURCE Gladstone Land Corporation