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For those looking to gain exposure to farmland as an asset class, the publicly traded REIT Gladstone Partners Corp (LAND) may seem tempting.
As a REIT, it trades on the same exchanges as stocks giving you a high level of liquidity. It is perhaps the easiest way out there to gain exposure to farmland.
However, publicly traded REITs come with a few downsides:
- Since they trade on the same exchanges as stocks, they are susceptible to the same ups and downs. Publicly traded REITs are heavily correlated with the stock market.
- Often times, these REITs underperform private or less liquid real estate investments.
Nonetheless, should you be interested, there are a number of things you should know about Gladstone Land Corp stock.
What Is Gladstone Land Corp (LAND)?
Gladstone Land Corp owns farmland and farm related facilities across 14 different US states. Currently, the trust owns 153 different farms totaling over 105,000 acres of land. In addition to that, they own 20,000 acre-feet of banked water in California, which is valued around $1.3 Billion.
Currently, 100% of acreage managed by them is fully leased.
Rental agreements with farmers also stipulate in most cases that the farmers are responsible for paying rent, insurance, maintenance and taxes. This minimizes the costs that are paid out of the trust and keeps profits high.
Gladstone Land Corp primarily purchases farmland used to grow healthy foods such as fruit, nuts and vegetables. They are also only 1 of 4 public companies managed by an SEC-registered investment advisor.
They have a team of 70 professionals collectively managing $3.5 Billion in assets.
How To Buy A REIT
Within a couple of minutes, you can purchase a farmland REIT for under $100!
Additionally, with that $100 investment, you are diversifying across dozens of farms. If things go south at one of the farms owned by the REIT, it's likely that the other farms will even out the returns. As a result, you'll take advantage of the consistent returns of an asset class that has continued to outperform the stock market.
To buy any farmland REIT, you'll need a trading app that supports buying and selling REITs.
Another plus is using a commission free brokerage that is also user friendly. You can purchase Gladstone Land Corp (LAND) on Robinhood commission free. You can even buy fractional shares.
Plus, Farmland Riches readers can get free stocks when they sign up!
- Currently, Gladstone Land Corp pays a quarterly dividend of $0.0451 per share
- However, they recently announced an increase to $0.0452 per share
- Based on a share price of $23.05, this gives them a dividend yield of 2.35%
Over the last 5 years, this stock has gone from around $10 per share to $23 per share. That is an overall return of around 111%.
However, much of the gain has been in the last year, whereas the stock is up over 61%. This is likely due to the renewed interest in farmland investing. Billionaires like Bill Gates buying farmland have made it a more trendy investment.
Revenue And Gross Profit
Both total revenue and gross profit have been on the rise over the last few years.
- 2018: $36,687,000
- 2019: $40,692,000
- 2020: $57,031,000
- TTM: $62,040,000
- 2018: $34,644,000
- 2019: $38,219,000
- 2020: $55,183,000
- TTM: $60,094,000
Is Gladstone Land Corp (LAND) A Buy?
With profits and revenue on the rise in addition to the increased dividend, Gladstone Land Corp appears to be on the “up and up.” It appears that they are making great decisions when it comes to purchasing new farms and helping the farmers to be successful.
Keep in mind, however, that the recent run up in the share price could have a lot to do with “hype.” If people suddenly lose interest in farmland as an asset class, the share price could decline in the short run.
While REITs are the easiest way to gain exposure to farmland, they are not the only way. Check out our article on the best farmland investing platforms for more options.
Should you decide to invest in Gladstone Land Corp, you can buy fractional shares of LAND on Robinhood commission free!