Gladstone Land Announces California Farmland Acquisition

Rhea-AI Summary

Gladstone Land Corporation (NASDAQ:LAND) has acquired 236 acres of farmland in Fresno County, California, for $3.6 million, aimed at growing almond trees. This acquisition is coupled with a 20-year lease agreement with an existing tenant, allowing operational expansion. David Gladstone, the company's President, expressed optimism about adding almond acreage, enhancing their nut crop portfolio. The company currently owns 128 farms across 13 states, valued at approximately $1 billion, and has consistently paid distributions to shareholders since its IPO in 2013.

Positive

• Acquisition of 236 acres for $3.6 million strengthens farmland portfolio.
• 20-year lease agreement with existing tenant enhances operational efficiency.
• Expansion in almond cultivation aligns with strategic growth in nut crops.
• Company's total farmland now includes approximately 94,000 acres valued at $1.0 billion.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / December 14, 2020 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land" or the "Company") announced that it has acquired 236 acres of farmland located in Fresno County, California, which are expected to be used to grow almond trees, for $3.6 million. In connection with the acquisition, Gladstone Land also entered into a 20-year lease agreement with an existing tenant.

"We are very pleased to increase our land base near Kerman, California," said Tony Marci, Managing Director of Gladstone Land. "This acquisition is adjacent to one of our existing farms leased by the same tenant, which will allow them to efficiently expand their operations."

"We are excited to build on our relationship with an existing tenant," said David Gladstone, President and CEO of Gladstone Land. "The incoming tenant on this farmland acquisition will plant almonds on the farm, adding to our acreage growing nut crops, which is an important part of our overall farmland holdings. We are continuing to evaluate a very robust list of farms to buy in the near-term future, as we work towards a strong end to 2020 and a good start for 2021."

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 128 farms, comprised of approximately 94,000 acres in 13 different states, valued at approximately $1.0 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 94 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 20 times over the prior 24 quarters, and the current per-share distribution on its common stock is $0.0449 per month, or $0.5388 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:

• 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.

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.

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

SOURCE: Gladstone Land Corporation

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FAQ

What did Gladstone Land Corporation announce on December 14, 2020?

Gladstone Land announced the acquisition of 236 acres of farmland in Fresno County, California, for $3.6 million.

How will the acquired farmland in Fresno County be used?

The farmland is expected to be used for growing almond trees.

What is the significance of the 20-year lease agreement with the tenant?

The lease agreement allows the tenant to efficiently expand their operations on the newly acquired land.

What is the current distribution per share for Gladstone Land?

The current distribution per share on Gladstone Land's common stock is $0.0449 per month, or $0.5388 annually.

How many farms does Gladstone Land own and what is their total value?

Gladstone Land currently owns 128 farms valued at approximately $1.0 billion.