Gladstone Land Corporation announced that it will redeem every share of its 5.00% Series D Cumulative Term Preferred Stock, a move that will remove the preferred equity layer from the company’s capital structure. The company will pay $25.100695 per share, which includes the $25.00 liquidation preference and $0.100695 in accrued and unpaid dividends. The redemption will be completed on January 30, 2026, in line with the mandatory redemption date of January 31, 2026, and the shares will be delisted from the Nasdaq Global Market.
The decision to redeem the Series D preferred stock is part of Gladstone Land’s broader strategy to streamline its balance sheet. By eliminating a mandatorily redeemable liability, the company reduces fixed dividend obligations and simplifies its capital structure, potentially lowering its cost of capital. The redemption also frees up cash that could be deployed toward future acquisitions, property development, or enhanced dividend payouts to common shareholders.
Gladstone Land’s real‑estate investment trust (REIT) has previously undertaken similar actions, including a July 2025 repurchase program for its Series B and C preferred stocks. The current redemption follows that pattern, signaling management’s intent to manage preferred equity levels proactively and maintain flexibility in capital allocation. While the total number of Series D shares outstanding and the overall cash outlay are not disclosed, the per‑share price reflects the company’s commitment to honoring its preferred equity obligations in a timely manner.
The move is expected to have a neutral impact on the company’s earnings per share and operating metrics, as the redemption is a non‑recurring cash outflow that does not affect ongoing revenue or operating income. However, the removal of the preferred equity layer may improve the company’s leverage ratios and enhance its ability to pursue growth opportunities in the farmland and farm‑related property market. Investors will likely view the redemption as a prudent step toward capital efficiency rather than a sign of financial distress.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.