Gladstone Land Acquires Almond Orchard in California
October 17 2016 - 8:15AM
Gladstone Land Corporation (NASDAQ:LAND) (“Gladstone Land” or the
"Company") announced today that it has acquired an almond orchard
in Fresno County, California, consisting of approximately 197 acres
for $6.5 million. Upon acquiring the property, the Company
entered into a 10-year, triple-net lease agreement with the seller,
one of the largest organic almond growers in the world. The
lease includes two, 5-year extension options and consists of both a
fixed cash rent component plus a variable rent component based on
the gross crop revenues earned on the property. The Company
anticipates that the annual cap rate on the property will average
between 8% and 10% over the life of the lease.
“We are pleased to announce the acquisition of a really nice
almond orchard that is just now heading into its peak production
years,” said Bill Reiman, Gladstone Land’s Western Managing
Director. “We acquired the property in connection with a
sale-leaseback agreement with a vertically-integrated tenant who is
an excellent almond farmer and marketer. Due to the age of
the trees, we should begin earning significant rental returns from
the participating rent component of the lease with next year’s
crop. We are very excited to add another high-quality almond
orchard with a strong tenant to the list of farms we own.”
“Our team has been very successful finding high-quality farms
with plenty of water that continue to appreciate in value and
provide strong returns along the way,” said David Gladstone,
President and CEO of Gladstone Land. “Such acquisitions have
allowed us to increase the monthly distributions on our common
stock twice over the past year for a total increase of 6.3%.
This farm is another acquisition we’re excited about, as the trees
are in their prime production period, and we expect the
participating rent component to provide us with nice returns that
will aid in our goal of increasing distributions to stockholders
every year. In the meantime, please eat more almonds; they
are a healthy food!”
About Gladstone Land
Corporation:Gladstone Land is a
publicly-traded real estate investment trust that invests in
farmland located in major agricultural markets in the U.S., which
it leases to farmers, and pays monthly distributions to its
stockholders. The Company intends to report the current fair
value of its farmland on a quarterly basis; as of June 30, 2016,
the estimated net asset value of the Company was $13.68 per
share. Gladstone Land currently owns 57 farms, comprised of
33,997 acres in 7 different states across the U.S., valued at
approximately $384 million. Its acreage is predominantly
concentrated in locations where its tenants are able to grow fresh
produce annual row crops, such as berries and vegetables, which are
planted and harvested annually or more frequently; as well as
permanent crops, such as almonds, blueberries, and pistachios,
which are planted every 10 to 20-plus years. The Company also
may acquire property related to farming, such as cooling
facilities, processing buildings, packaging facilities, and
distribution centers. Gladstone Land has paid 44 consecutive
monthly cash distributions on its common stock since its initial
public offering in January 2013. The current per-share
distribution on its common stock is $0.0425 per month, or $0.51 per
year, which, based on the most recent closing price of our common
stock, provides for an annual yield of 5.0%. Additional
information can be found at www.GladstoneLand.com and
www.GladstoneFarms.com.
Owners or brokers who have farmland for sale in the U.S. should
contact:
Eastern U.S. – Bill Frisbie at (703) 287-5839 or
bill.f@gladstoneland.comWestern U.S. – Bill Reiman at (805)
263-4778 or bill.r@gladstoneland.com Midwest U.S. – Bill Hughes at
(618) 606-2887 or bill.h@gladstoneland.com
For stockholder information on Gladstone Land, call (703)
287-5893. For Investor Relations inquiries related to any of
the monthly dividend-paying Gladstone funds, please visit
www.Gladstone.com.
All statements contained in this press release, other than
historical facts, may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates" and variations of the
foregoing words and similar expressions are intended to identify
forward-looking statements. Readers should not rely upon
forward-looking statements because the matters they describe are
subject to known and unknown risks and uncertainties that could
cause the Company's business, financial condition, liquidity,
results of operations, funds from operations or prospects to differ
materially from those expressed in or implied by such statements.
Such risks and uncertainties are disclosed under the caption
"Risk Factors" of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2015, as filed with the SEC on
February 23, 2016. The Company cautions readers not to place
undue reliance on any such forward-looking statements, which speak
only as of the date made. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
For further information: Gladstone Land, 703-287-5893
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