Barry Oxford, an analyst from Colliers Securities, maintained the Hold rating on Gladstone Land (LAND – Research Report). The associated price target was lowered to $10.00.
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Barry Oxford has given his Hold rating due to a combination of factors affecting Gladstone Land’s current and future performance. The company is facing challenges in accurately modeling participation rent, which is expected to play a more significant role in rent collection in 2025. Additionally, the elevated interest rate environment and seller expectations are likely to impact the company’s acquisition strategy, prompting a cautious approach to new investments.
Gladstone Land’s recent financial performance has shown a decrease in AFFO, despite slightly exceeding consensus estimates. The company has also experienced a decline in occupancy rates, with several farms remaining vacant. While some lease transactions have been completed, they are projected to decrease net operating income. Furthermore, the company’s high level of debt and preferred stock, comprising approximately 70% of total capitalization, poses a financial risk. Despite these challenges, Gladstone Land maintains a positive liquidity position, which supports the Hold rating.
According to TipRanks, Oxford is a 3-star analyst with an average return of 0.9% and a 51.59% success rate. Oxford covers the Real Estate sector, focusing on stocks such as Centerspace, Postal Realty, and Gladstone Commercial.