Gladstone Land Corporation reported total operating revenues of $16.80 million for the first quarter of 2025, marking a 17.0% decrease from $20.25 million in the prior-year period. This decline was primarily driven by a 28.9% decrease in fixed lease payments, which fell to $13.93 million.
Variable lease payments saw a substantial increase, rising to $2.88 million from $0.23 million in Q1 2024, largely due to additional cash collections from wine grape sales and a $2.4 million lease termination fee. Net income for the quarter increased to $15.11 million, up from $13.57 million, primarily benefiting from a $15.41 million net gain on dispositions of real estate assets.
Adjusted Funds From Operations (AFFO) decreased to $2.04 million, or $0.06 per share, in Q1 2025, down from $5.13 million, or $0.14 per share, in Q1 2024. This decline in AFFO reflects the impact of reduced fixed base rents and lost revenues from sales and tenancy issues, partially offset by the lease termination fee and participation rents.
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