Gladstone Land’s Crop Types and Geographic Focus Continue to Outperform
February 09 2017 - 4:25PM
Gladstone Land Corporation (NASDAQ:LAND) (“Gladstone Land” or the
“Company”) announced today that its primary investment focus,
farmland growing annual fresh produce, had the highest returns of
any other crop type category in 2016, returning a total of 18.03%,
versus the average across all crop types of 7.09%, according to the
National Council of Real Estate Investment Fiduciaries (“NCREIF”)
Farmland Property Index for 2016. Over 72% of Gladstone
Land’s farmland rental revenue came from farms growing annual fresh
produce crops during 2016.
The NCREIF Farmland Property Index also tracks regional
quarterly returns on 743 farms in the U.S. with an aggregate value
of approximately $8.0 billion. 2016 total returns for the
four regions in which Gladstone Land owns approximately 95% of its
acreage (California, Mountain, Pacific Northwest, and the
Southeast) ranged between 7.81% and 10.94%, all beating the average
of 7.09%.
States/Regions(1) |
# ofFarms |
Market Value (millions) |
2016 Total
Returns(2) |
California |
233 |
$ |
3,826 |
10.94 |
% |
Mountain |
53 |
|
541 |
9.75 |
% |
Pacific Northwest |
57 |
|
500 |
8.80 |
% |
Southern Plains |
21 |
|
231 |
7.84 |
% |
Southeast |
38 |
|
412 |
7.81 |
% |
Lake States |
39 |
|
263 |
4.63 |
% |
Delta States |
79 |
|
1,272 |
2.77 |
% |
Corn Belt |
207 |
|
835 |
-4.56 |
% |
(1) NCREIF designates California as the “Pacific West,”
even though California is the only state in that designated region.
Regions with a limited number of farms are not listed. (2)
Includes appreciation (or depreciation), realized capital gains
(losses), and income (loss). Income (loss) is defined as each
property’s net operating income (loss).
“While we are continually looking to diversify our farmland
portfolio and take advantage of great investment opportunities, our
core focus is, and continues to be, to purchase farms growing
healthy foods, such as fresh produce and nuts,” said David
Gladstone, President and CEO of the Company. “Currently, more
than 35% of our fresh produce acreage is either organic or in
transition to be organic. There has also been a lot of recent
publications discussing the continued slump in Midwest grain
prices. This has had a very minimal impact on our tenants
since less than 5% of our acreage is located in or near the Corn
Belt, and all our farms in this region are irrigated and able to
grow a variety of non-grain crops, including potatoes and edible
dry beans.”
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 September 30,
2016, the estimated net asset value of the Company was $13.68 per
share. Gladstone Land currently owns 59 farms, comprised of
54,340 acres in 7 different states across the U.S., valued at
approximately $452 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 48 consecutive
monthly cash distributions on its common stock since its initial
public offering in January 2013, and the current per-share
distribution on its common stock is $0.043 per month, or $0.516 per
year. 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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