Gladstone Land Acquires Citrus Groves in South Florida

Rhea-AI Summary

Gladstone Land Corporation (Nasdaq:LAND) has acquired two citrus groves in South Florida, spanning 617 acres, for approximately $5.2 million. This acquisition includes a 12-year leaseback agreement with the seller. The groves, producing lemons and oranges, are expected to enhance Gladstone's portfolio in a state known for its citrus production. Gladstone Land currently owns 157 farms across the U.S., valued at about $1.3 billion, and has a consistent track record of monthly cash distributions since its IPO in 2013.

Positive

• Acquisition of 617 acres of citrus groves for $5.2 million strengthens portfolio.
• 12-year leaseback agreement ensures stable income from acquired properties.
• Expansion into Florida, a significant agricultural market known for citrus.
• Company has a strong history of paying monthly distributions without interruption.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / August 19, 2021 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") announced that it has acquired two lemon and orange groves, totaling 617 acres in South Florida for approximately $5.2 million. In connection with the acquisition, Gladstone Land entered into a 12-year leaseback agreement with the seller.

"We are excited to acquire our first groves in Florida, a state with a long and celebrated citrus history. These groves produce lemons and oranges sold into the juice and fresh markets. Our tenant, the seller, has been very proactive managing the health and production of these groves, and we believe they are well-positioned for the future," said Bill Frisbie, Executive Vice President of Gladstone Land.

"These two properties are ideal for our growing portfolio of farms producing healthy fruits and vegetables," said David Gladstone, President and CEO of Gladstone Land. "We are continuing to target the highest quality farms with secure sources of water. However, our greatest strength is that the growers we partner with are dedicated to cultivating the best produce and preserving resources."

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 157 farms, comprised of over 106,000 acres in 14 different states and over 20,000 acre-feet of banked water in California, valued at approximately $1.3 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 102 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 23 times over the prior 26 quarters, and the current per-share distribution on its common stock is $0.0451 per month, or $0.5412 per year. Additional information, including detailed information about ach 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 did Gladstone Land Corporation acquire on August 19, 2021?

Gladstone Land Corporation acquired two citrus groves totaling 617 acres in South Florida for approximately $5.2 million.

What is the significance of the leaseback agreement related to the acquisition by LAND?

The acquisition includes a 12-year leaseback agreement with the seller, providing stable income for Gladstone Land.

How does the acquisition impact LAND's portfolio?

The acquisition enhances Gladstone Land's portfolio by expanding into the Florida citrus market, which is known for its significant agricultural production.

What is the current distribution rate for Gladstone Land's shareholders?

Gladstone Land currently pays a monthly distribution of $0.0451 per share, totaling $0.5412 annually.