What caused LAND's Q1 earnings miss in 2024?

Gladstone Land's Q1 2024 earnings miss can be attributed to several key factors: 1. **Decline in Adjusted FFO**: The company's Adjusted FFO decreased year-over-year, signaling operational challenges. This decline was attributed to changes in lease structures, tenant issues, and the impact of asset sales. 2. **EPS Miss Due to Tenant Challenges and Lease Adjustments**: The earnings per share (EPS) of -$0.151 for Q4 2024 missed the forecast of -$0.114. This miss was due to decreased fixed base rents on certain properties, which were offset by increased participation rents. The company had adjusted lease agreements on some farms, granting tenants a cash allowance to cover growing costs in return for a larger share of the gross crop proceeds. These adjustments, while beneficial in the long term, temporarily affected revenue recognition, leading to the EPS miss. In summary, Gladstone Land's Q1 2024 earnings miss was primarily due to operational challenges, specifically the decline in Adjusted FFO and the EPS miss resulting from tenant challenges and lease adjustments.