Gladstone Land Acquires Blueberry Cooling and Storage Facilities in California

Rhea-AI Summary

Gladstone Land Corporation (NASDAQ: LAND) announced the acquisition of approximately 108,000 square feet of cold storage facilities in Stockton, California, essential for the cooling and storage of fresh blueberries. A 10-year lease has been signed with the current tenant. The company reported two consecutive years of growth and anticipates further growth in 2021 from additional farms purchased and expected participation rents. Currently, Gladstone Land owns 140 farms valued at about $1.2 billion and has consistently paid monthly cash distributions since 2013.

Positive

• Acquisition expands portfolio of cold storage facilities critical for blueberry preservation.
• Anticipation of continued growth due to additional farms and expected participation rents.
• Consistent monthly cash distributions paid to shareholders since 2013, indicative of financial stability.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / March 15, 2021 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land" or the "Company") announced that it has acquired approximately 108,000 square feet of various cold storage and supporting facilities in Stockton, California. The facilities are primarily used for the cooling and storage of fresh organic and conventional blueberries. In connection with the acquisition, Gladstone Land entered into a 10-year lease agreement with the seller, who is an existing tenant of the Company.

"These facilities are critical to the tenant's local farming operations," said Joseph Van Wingerden, Director at Gladstone Land. "Blueberries need to be cooled very quickly after being harvested in order to preserve their quality. We are excited to continue our role as capital partners for our growers and expand our portfolio of both farmland and farm-related facilities in the fresh fruit and produce space."

"Gladstone Land has had two consecutive years of very strong growth, and we hope to continue that trend," said David Gladstone, President and CEO of Gladstone Land. "We are also expecting another strong year from an operational standpoint. We have several additional farms that were purchased at the end of 2020 that had little impact on last year's financial results. In addition, we have more farms scheduled to pay participation rents later in 2021. We are hopeful that these additional participation rents, along with the higher margins achieved on our recent acquisitions, will allow us to further grow our adjusted funds from operations."

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 in 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 140 farms, comprised of approximately 101,000 acres in 13 different states, valued at approximately $1.2 billion. 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, lemons, 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 97 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 21 times over the prior 25 quarters, and the current per-share distribution on its common stock is $0.04495 per month, or $0.5394 per year. Additional information, including detailed information about each of the Company's farms, can be found at www.GladstoneLand.com.

Owners or brokers who have farmland for sale in the U.S. should contact:

• Western U.S. - Bill Reiman at (805) 263-4778 or bill.r@gladstoneland.com, or Tony Marci at (831) 225-0883 or tony.m@gladstoneland.com
• Midwest U.S. - Bill Hughes at (618) 606-2887 or bill.h@gladstoneland.com
• Mid-Atlantic U.S. - Joey Van Wingerden at (703) 287-5914 or joe.v@gladstoneland.com
• Southeastern U.S. - Bill Frisbie at (703) 287-5839 or bill.f@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.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS:

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, 2020 (the "Form 10-K"), as filed with the SEC on February 24, 2021, 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.

For further information: Gladstone Land, 703-287-5893

SOURCE: Gladstone Land Corporation

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FAQ

What is the significance of Gladstone Land's recent acquisition of cold storage facilities?

The acquisition enhances Gladstone Land's operational capacity for blueberry cooling, crucial for maintaining product quality, and strengthens its portfolio in the fresh produce sector.

How long is the lease agreement for the newly acquired facilities?

Gladstone Land has entered into a 10-year lease agreement with the seller, who is an existing tenant.

What are the expected financial impacts of the recent acquisition on Gladstone Land?

The acquisition is expected to contribute to Gladstone Land's growth in adjusted funds from operations and support the anticipated participation rents from additional farms acquired.

How many farms does Gladstone Land currently own?

Gladstone Land currently owns 140 farms across 13 different states, valued at approximately $1.2 billion.

How has Gladstone Land performed in terms of cash distributions?

Gladstone Land has paid 97 consecutive monthly cash distributions since its IPO in January 2013, with increases in distributions 21 times over the past 25 quarters.