Gladstone Land — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total operating revenues increased 77.0% year-over-year to $31.47 million, compared to $17.79 million in the prior-year quarter.
• Net income rose 428.3% to $11.0 million, compared to $2.1 million in the prior-year quarter.
• Net income attributable to common stockholders was $6.1 million ($0.14 per share), compared to a net loss of $3.9 million ($0.11 per share) in the prior-year quarter.
• Funds from operations (FFO) available to common stockholders increased 810.1% to $15.9 million ($0.37 per share), compared to $1.7 million ($0.05 per share) in the prior-year quarter.
• Core FFO (CFFO) available to common stockholders increased 809.5% to $15.9 million ($0.37 per share), compared to $1.7 million ($0.05 per share) in the prior-year quarter.
• Adjusted FFO (AFFO) available to common stockholders increased 968.7% to $15.1 million ($0.35 per share), compared to $1.4 million ($0.04 per share) in the prior-year quarter.
• Total cash lease revenues increased by approximately $11.0 million, driven by an $11.4 million increase in participation rents.
• Direct farming operations generated a net profit of approximately $2.9 million.
• Cash flows from operations improved by approximately $6.4 million compared to the prior-year quarter.
• Total indebtedness decreased 9.2% to $492.7 million, compared to $542.8 million in the prior-year quarter.
• Total assets decreased 3.6% to $1,181.7 million, compared to $1,225.8 million in the prior-year quarter.

Guidance and Future Outlook:

• Management expects a substantial majority of 2026 revenue and earnings to be recognized in the second half of the year due to the timing of participation rent and crop sales recognition.
• Pricing for the 2026 pistachio crop is expected to remain strong in the near term despite significantly lower yields.
• Management anticipates constrained supply will continue to support pricing for pistachios and almonds.
• The company views current lease modifications as temporary and targets a return to traditional lease structures with fixed base rents.
• The company remains focused on acquiring additional water resources to strengthen long-term farm viability.

Business Segments and Product Lines:

• Repositioned Farms: Three farms operate under modified lease agreements with reduced/eliminated fixed base rent and higher participation rent components; two properties operate under management agreements with third-party operators.
• Lease Activity: Executed nine amended or new lease agreements expected to increase annual net operating income by approximately $241,000.
• Participation Rents: Recorded approximately $16.8 million, compared to $5.4 million in the prior-year quarter, driven by the early recognition of the 2025 pistachio grower-partner bonus and strong almond/pistachio pricing.
• Crop Sales: Recorded net profit from crop sales on direct-operated farms of approximately $2.9 million.
• Property Sales: Sold two farms in Florida totaling 617 gross acres for approximately $3.2 million, resulting in a net loss of approximately $169,000.
• Impairment: Recorded a non-cash impairment charge of approximately $2.2 million related to five farms in Arizona and Washington.
• Property Acquisition: Acquired one 180-acre farm in Washington as partial satisfaction of outstanding obligations owed by a tenant in default.
• Solar Options: Entered into two agreements granting third-party solar companies options to purchase up to 5,638 acres of California farmland, providing aggregate annual option payments starting at approximately $331,000.

Market and Competitive Landscape:

• Primary processor announced an initial base price of $2.50 per pound for split in-shell pistachios for the 2026 crop, a 67% increase over the 2025 base price.
• The minimum grower-partner bonus payment for the 2025 crop brought the total price to $2.90 per pound, a 21% increase over the final 2024 crop price.
• Almond prices are currently 18% to 25% higher than the previous year.
• The 2026 pistachio crop is an "off" year due to alternate-bearing nature and a March heat event in California that impacted pollination.

Risks and Challenges:

• Yield Uncertainty: Significantly lower yields on the 2026 pistachio crop due to weather events and alternate-bearing cycles.
• Revenue Timing: Reliance on participation rents and crop sales creates a timing shift in earnings recognition, with the majority of revenue expected in the second half of the year.
• Tenant Obligations: A tenant in default resulted in a property acquisition via forbearance agreement.
• Operating Expenses: Property operating expenses increased by approximately $1.1 million due to supplemental water costs, higher legal expenses for water rights protection, and costs associated with vacant or non-accrual properties.
• Forward-Looking Risks: The press release notes risks including the ability to procure financing, economic downturns, tenant performance, competition for lease renewals, and interest rate changes.

Management Commentary and Tone:

• David Gladstone, President and CEO, stated that the financial cycle for the 2025 crop is nearing completion with results exceeding internal expectations.
• Management voluntarily waived the incentive fee earned in the third quarter to preserve the dividend for shareholders during the period of uncertainty surrounding the 2026 crop results.
• Management expressed encouragement regarding market conditions for pistachios and almonds and remains committed to enhancing farm viability through water resource acquisition.

Other Key Points:

• Debt Activity: Repaid approximately $5.2 million of loans with an effective interest rate of 3.47%.
• Preferred Stock Repurchases: Repurchased 456,823 shares of Series B and Series C Preferred Stock at an average price of $20.80 per share, resulting in a gain of approximately $784,000. Subsequent to quarter-end, repurchased 182,872 shares at an average price of $19.64 per share, resulting in a gain of approximately $519,000.
• Equity Activity: Issued and sold 156,273 common shares under the ATM program for net proceeds of approximately $1.5 million.
• Dividends: Paid monthly cash distributions of $0.1401 per common share for the quarter. Declared monthly distributions of $0.0467 per share for October, November, and December 2026.
• Portfolio Metrics: Owned 142 farms (down from 148) totaling 98,065 acres (down from 100,323). Occupancy rate was 97.7%.
• Conference Call: Scheduled for November 11, 2026, at 8:30 a.m. Eastern Time.