Gladstone Land Corporation: Profit From Farmland And Vineyards With This Monthly Dividend Stock

As a result, LAND generates lots of cash flow, which allows it to pay dividends to shareholders. Funds From Operation, a non-GAAP measure of cash flow, increased 24% in 2016. On an adjusted basis, FFO-per-share increased 36% to $0.541.

Growth was due primarily to a 35% increase in number of farms owned. Occupancy stood at 100% in 2016, which indicates a strong property portfolio.

Growth Prospects

LAND has positive growth prospects, because it stands to capitalize on two major long-term trends. First, is growth of the global population.

The world population recently surpassed 7 billion, and is expected to eclipse 9 billion by 2050. Adding two billion more people to the Earth over the next 33 years will likely place enormous pressure on farmers to grow more food.

At the same time, there is only so much land for farming. In fact, the supply of available farmland is actually decreasing in the U.S., as large amounts of farmland are converted to suburban use each year, for things like housing, schools, and offices.

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LAND Growth

Source: June 2017 Investor Presentation, page 5

The combination of falling supply and increasing demand has caused farmland prices to rise steadily for many years. As the supply and demand trends are not expected to reverse any time soon, LAND has a strong future growth outlook.

Future growth will be achieved through growth at existing properties, and by investing in new properties.

LAND makes frequent acquisitions to grow its investment portfolio. A few of its property acquisitions over the past few months include:

  • July 17th acquisition of four pistachio and almond farms in California for $13.6 million
  • August 9th acquisition of a 1,910-acre vegetable farm in Florida for $9.7 million
  • September 5th acquisition of a 361-acre vineyard in California for $5.4 million
  • September 11th acquisition of a 746-acre organic farm in Washington for $9.5 million
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Disclosure: Sure Dividend is published as an information service. It includes opinions as to buying, selling and holding various stocks and other securities.

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