Gladstone Land Announces Large Farmland Acquisition in California

Rhea-AI Summary

Gladstone Land Corporation (NASDAQ:LAND) has acquired 4,642 acres of farmland in Tulare County, California, for $61.5 million. The property features nearly 3,000 planted acres of almonds, pistachios, and organic pomegranates. A 10-year leaseback agreement was established with the seller, enhancing operational stability. This acquisition expands Gladstone Land's portfolio and introduces a new crop, pomegranates, further cementing its position in the agricultural market.

Positive

• Acquisition of 4,642 acres of premium farmland enhances portfolio.
• Introduction of pomegranates diversifies crop offerings.
• 10-year leaseback agreement provides stable cash flow.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / December 17, 2020 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land" or the "Company") announced that it has acquired 4,642 acres of farmland located in Tulare County, California, for $61.5 million. The farm includes nearly 3,000 planted acres of almonds, pistachios, and both conventional and organic pomegranates. In connection with the acquisition, Gladstone Land entered into a 10-year leaseback agreement with the seller.

"Today, we are extremely excited to announce our first acquisition in Tulare County, California," said Bill Reiman, Executive Vice President of Gladstone Land. "The addition of this farm is a good example of one of our typical sale-leaseback transactions. We are adding a very large block of premium farmland and gaining one of the best operators in the southern San Joaquin Valley as a tenant-partner. We are looking forward to many years of fruitful ownership of this property and building a close relationship with our new tenant."

"We are pleased to be adding a new crop, pomegranates, to our diverse portfolio with this acquisition," said David Gladstone, President, and CEO of Gladstone Land. "This acquisition is another addition to our many farms in the U.S. and also allows us to develop a new relationship with a strong grower in the San Joaquin Valley."

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 132 farms, comprised of approximately 99,000 acres in 13 different states, valued at approximately $1.1 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 acquire on December 17, 2020?

Gladstone Land Corporation acquired 4,642 acres of farmland in Tulare County, California, for $61.5 million.

What crops are included in Gladstone Land's recent acquisition?

The acquisition includes nearly 3,000 planted acres of almonds, pistachios, and both conventional and organic pomegranates.

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

Gladstone Land entered into a 10-year leaseback agreement with the seller, ensuring stable rental income from the property.

How does the acquisition impact Gladstone Land's overall portfolio?

The acquisition expands Gladstone Land's portfolio and introduces a new crop, strengthening its market position.

What is the reported value of Gladstone Land's farmland holdings?

Gladstone Land currently owns approximately 132 farms, valued at around $1.1 billion.