Gladstone Land Acquires Organic Blueberry Orchards in Oregon & California

Rhea-AI Summary

Gladstone Land Corporation (Nasdaq:LAND) has acquired organic farmland worth approximately $42.3 million in California and Oregon. The properties, featuring advanced irrigation and sustainable practices, are leased back to the seller for 10 to 15 years. The acquisition aligns with the increasing demand for organic produce, which rose by 11% in 2020. Gladstone Land currently manages 155 farms across 14 states, valued at about $1.3 billion, and has a strong record of 102 consecutive monthly cash distributions. This strategic move aims to enhance its healthy produce portfolio.

Positive

• Acquisition of organic blueberry farms valued at $42.3 million enhances portfolio.
• Leases range from 10 to 15 years, ensuring stable rental income.
• Demand for organic produce is rising, reported increase of 11% in 2020.
• Gladstone Land owns 155 farms valued at approximately $1.3 billion.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / August 12, 2021 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") announced that it has acquired approximately $42.3 million of farmland, blueberry plantings, and improvements located in Kern County, California, and Yamhill County, Oregon. Both farms are 100% certified USDA organic. In connection with the acquisitions, Gladstone Land entered into triple-net leaseback agreements with the seller on each farm, ranging in length from 10 years to 15 years.

"Both of these organic blueberry farms utilize advanced irrigation methods, high density plantings, and shade structures to minimize inputs and protect the quality of the fruit," said Joseph Van Wingerden, Director at Gladstone Land. "Organic produce sales reportedly increased by 11% in 2020 as the demand for organics continues to grow. The innovative growing methods used by our tenant on these properties represent how the best farmers are continually striving to meet this demand with the highest quality produce while being good stewards of the land and minimizing water use."

"These two acquisitions are ideal properties for our growing portfolio of farms producing healthy produce," said David Gladstone, President and CEO of Gladstone Land. "We are continuing to target the highest quality farms with secure sources of water. But our greatest strength is that the growers we partner with are dedicated to cultivating the best produce and preserving resources. I recommend going to your local grocery store and buying as many fruits, vegetables, and nuts as you can!"

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 155 farms, comprised of approximately 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 is the significance of Gladstone Land's recent acquisition?

The acquisition of organic farms aims to strengthen its portfolio and meet increasing organic produce demand.

How much did Gladstone Land pay for the new properties?

Gladstone Land acquired the properties for approximately $42.3 million.

What are the lease terms for the acquired farms?

The leases for the acquired farms range from 10 to 15 years.

What is the expected impact of the acquisition on LAND's revenue?

The acquisition is expected to contribute to stable rental income and growth due to rising organic produce demand.

How many farms does Gladstone Land own currently?

Gladstone Land currently owns 155 farms across 14 states.