Gladstone Land Acquires Pistachio and Almond Farms in California for $13.6 Million
July 17 2017 - 4:56PM
Gladstone Land Corporation (NASDAQ:LAND) (“Gladstone Land” or the
“Company”) announced today that it has acquired four contiguous
farms totaling 847 gross acres in Fresno County, California, for
approximately $13.6 million. In total, the farms contain
approximately 327 acres of pistachio trees and 318 acres of almond
trees, all planted between 2002 and 2009. Upon acquisition,
Gladstone Land entered into a leaseback agreement with the seller,
a leading almond and pistachio grower, harvester, and processor,
for a 10-year, triple-net lease that includes one, 5-year extension
option. The lease consists of a fixed cash rent component
plus a revenue-sharing component based on the crops harvested on
the farms.
“This acquisition is another fine example of the
productive relationships we have developed with our tenants,” said
Bill Reiman, Gladstone Land’s Managing Director for the Western
United States. “The sale-leaseback transaction is a hallmark
of our investment thesis, and we hope to continue providing this
service to current and new tenants all over the Western United
States.”
“This acquisition allows us to continue to grow our
portfolio of farmland focused on growing healthy products, such as
fresh produce and nuts,” said David Gladstone, President and CEO of
Gladstone Land. “The lease on this property should allow us
to generate strong returns, thereby helping us to achieve our goal
of regularly increasing the distributions we pay to our
shareholders. We have increased the distributions rate on our
common stock in each of the past four quarters.”
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 March 31, 2017,
the estimated net asset value of the Company was $14.47 per
share. Gladstone Land currently owns 69 farms, comprised of
58,777 acres in 8 different states across the U.S., valued at
approximately $504 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 53 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 $0.044 per month, or $0.528 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.com
- Western 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, 2016 (the “Form 10-K”), and
Quarterly Report on Form 10-Q for the three months ended March 31,
2017 (the “Form 10-Q”), each as filed with the SEC. 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 a definition of net asset value and a
reconciliation to the most directly-comparable GAAP measure, please
see the Company’s Form 10-K or Form 10-Q.
For further information: Gladstone Land, 703-287-5893
Gladstone Land (NASDAQ:LAND)
Historical Stock Chart
From Apr 2024 to May 2024
Gladstone Land (NASDAQ:LAND)
Historical Stock Chart
From May 2023 to May 2024