Gladstone Land Corp (LAND) is an externally managed farmland REIT with a gross real estate asset base that stood at approximately $1.30 billion as of the prior fiscal year-end (December 31, 2025), declining from $1.37 billion at December 31, 2024, driven by the sale of 13 farms subsequent to December 31, 2024 and ongoing impairments. The MFFAIS-reported liquidation value is negative $447 million across all three measures (cash, liquid, and operating), consistent with the structural asymmetry of a leveraged real estate entity: haircutted farmland PP&E (applying a 50-70% recovery rate to gross real estate of roughly $1.30 billion yields a range of roughly $650-$910 million) faces off against face-value debt obligations. Borrowings carry approximately $469 million principal balance at face for fixed-rate notes and bonds payable, with an additional substantial preferred equity stack (Series B 6.00%, Series C 6.00%, Series E 5.00%) that would stand ahead of common equity in a wind-down. The Series D Term Preferred Stock ($60.4 million) was redeemed in full in January 2026, reducing the senior capital claim, but this was partially offset by approximately $39.4 million in net new borrowings and $36.7 million of new common equity raised in Q1 2026. Current fixed-rate borrowings have a weighted-average remaining term of approximately 6.4 years at an effective rate of 3.41%, limiting near-term refinancing risk but locking in substantial face-value claims under a liquidation scenario. Operational deterioration is evident: same-property fixed lease revenue declined 29.5% year-over-year to $9.5 million in Q1 2026, with two tenants (leasing eight farms) moved to cash-basis revenue recognition due to collectability concerns, and one property (two farms) shifted to direct-operated status. An $884K impairment was recognized on a two-farm property in St. Lucie County, Florida in Q1 2026, adding to the $3.9 million of impairments recorded across full-year 2025. Depreciation and amortization surged 23% to $10.4 million in Q1 2026 due to accelerated depreciation on permanent plantings with shortened useful lives, signaling further asset quality deterioration embedded in the book value that would not be recovered in liquidation. Cash on hand as of the filing date is approximately $10.7 million, with $138.3 million of credit facility availability subject to collateral and covenant compliance. The filing does not separately disclose balance sheet totals for total assets, total debt, or net equity in the XBRL TAG_CONTEXT provided, preventing direct calculation of tagged balance sheet line items. All balance sheet and debt figures referenced above are drawn from MD&A narrative and prior-period Schedule III disclosures in the annual filing.
▼ Community Notes