Gladstone Land Provides Update on Impact of Coronavirus on Operations and Distributions
March 26 2020 - 11:30AM
Gladstone Land Corporation (Nasdaq: LAND) (“Gladstone Land” or the
“Company”) announced today that it has provided the following
update to its shareholders:
Farming Operations: The
Company does not believe the current Coronavirus pandemic has had a
major impact on its operations or that of its tenant-farmers at
this point in time. Farmland values are expected to remain stable,
as they generally have throughout history during times of economic
volatility, and rental payments from tenants leasing the Company’s
farms are expected to continue on time. While sales volumes of the
crops grown by our farmers have increased recently, the Company
believes this is a temporary situation driven by the substantial
increase in foot traffic within grocery stores as the public has
been stocking up on food products, paper goods, and other
necessities. The Company believes that sales volume is likely to
return to normal in due time.
Distributions: At this
time, the Company believes it is in a good position and intends to
ask the Company’s board of directors to declare cash distributions
for the second quarter that are at least equal to the current
distribution rate. All farms continue to be leased, and all
tenant-farmers continue to be current in their rental payments.
Almost all of our farms grow healthy foods, such as nuts,
strawberries, blueberries, and fresh vegetables, all of which have
been in high demand at grocery stores due to increased traffic.
Many of the Company’s farmers have also reported
higher-than-average prices for their crops due to the demand for
fresh produce. In short, the Company’s farmers seem to be having a
good year, and more and more people are trending towards healthier
diets.
The board of directors will meet on April 14,
2020, to decide on the monthly cash distribution for each of April,
May, and June. While it is possible that an event will occur that
negatively impacts operations, the Company does not currently see
such an event on the horizon. The point of this press release is to
let shareholders know that the cash distributions are believed to
be secure for the next quarter.
About Gladstone Land
Corporation:Founded in 1997, Gladstone
Land is a publicly traded real estate investment trust that
acquires and owns farmland and farm-related properties located in
major agricultural markets across the U.S. and leases its
properties to unrelated third-party farmers. The Company, which
reports the aggregate fair value of its farmland holdings on a
quarterly basis, currently owns 113 farms, comprised of
approximately 88,000 acres in 10 different states, valued at
approximately $885 million. Gladstone Land's farms are
predominantly located in regions where its tenants are able to grow
fresh produce annual row crops, such as berries and vegetables,
which are generally planted and harvested annually. The Company
also owns farms growing permanent crops, such as almonds, apples,
cherries, figs, olives, pistachios, and other orchards, as well as
blueberry groves and vineyards, which are generally planted every
10 to 20-plus years and harvested annually. The Company may also
acquire property related to farming, such as cooling facilities,
processing buildings, packaging facilities, and distribution
centers. The Company pays monthly distributions to its stockholders
and has paid 85 consecutive monthly cash distributions on its
common stock since its initial public offering in January 2013. The
Company has increased its common distributions 17 times over the
prior 20 quarters, and the current per-share distribution on its
common stock is 0.04465 per month, or 0.53580 per year. Additional
information, including detailed information about each of the
Company's farms, can be found at 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
- Midwest U.S. – Bill Hughes at (618) 606-2887 or
bill.h@gladstoneland.com
- Western U.S. – Bill Reiman at (805) 263-4778 or
bill.r@gladstoneland.com, orTony Marci at (831) 225-0883 or
tony.m@gladstoneland.com
Lenders who are interested in providing the
Company with long-term financing on farmland should contact Jay
Beckhorn at (703) 587-5823 or
Jay.Beckhorn@GladstoneCompanies.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.GladstoneCompanies.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, 2019 (the “Form 10-K”), as filed with the
SEC on February 19, 2020, and certain other documents filed with
the SEC from time to time. 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.
SOURCE: Gladstone Land Corporation
For further information: Gladstone Land,
703-287-5893
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