Gladstone Land Acquires Farmland in Colorado
January 03 2017 - 4:05PM
Gladstone Land Corporation (NASDAQ:LAND) (“Gladstone Land” or the
"Company") announced today that on December 28, 2016, it acquired
16,595 acres of farmland across one large, contiguous farm in Baca
County, Colorado, for total consideration of approximately $9.1
million in cash and 233,952 common units of limited partnership
interest in its operating partnership (“OP Units”). The OP
Units issued were valued at $12.93 per unit, resulting in the total
consideration of $12.1 million.
In addition, Gladstone Land entered into a triple-net lease
agreement with the existing operator on the property for an initial
term that runs through 2020 and includes one, 5-year extension
option. The initial term of the lease provides for annual
rent escalations and an overall, straight-line capitalization rate
of 5.9%.
“Gladstone Land is fortunate to team up with one of the
top-tiered operators in the area. Our tenant has farmed in
Southeast Colorado for decades with an operation that specializes
in providing a high-fiber hay blend for the cattle raising
industry,” said Bill Hughes, Gladstone Land’s Midwest Managing
Director. “This farm acquisition is a great example of how
the Company can add profitable assets to the portfolio.
Adding this purchase to our earlier acquisition in Baca County
strengthens our commitment to a new region and a new crop
specialty. A single tract of land this size affords our
operator great economies of scale by being much more efficient with
his use of manpower and equipment.”
“This is a very strong acquisition to finish the year,” said
David Gladstone, President and CEO of the Company. “Similar
to our most recent purchase in Colorado, the soil on this farm is
ideally suited to grow high-quality crops to serve the cattle
industry. This acquisition was another opportunity to partner
with a very strong tenant, diversify our portfolio, and add
additional farm owners as investors by issuing OP Units, which are
like common stock. The Company has another large farm that is
scheduled to close in January if all of the due diligence comes out
positively. We believe that 2017 will be the best year in our
Company’s history, and we plan on increasing our dividend if
earnings continue to increase.”
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 58 farms, comprised of
50,592 acres in 7 different states across the U.S., valued at
approximately $398 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 $0.0425 per month, or $0.51 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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