Gladstone Land Announces Large Farmland Acquisitions in California & Washington

Rhea-AI Summary

Gladstone Land Corporation (NASDAQ:LAND) has acquired approximately 1,670 acres of farmland across California and Washington, including 1,390 planted acres of blueberries. This deal also involves a 10-year triple-net leaseback agreement with the seller. The company reported strong demand for fresh blueberries, particularly organic varieties. In December alone, Gladstone Land completed $162 million in acquisitions. Currently, the company owns 136 farms valued at about $1.2 billion, and has consistently paid monthly distributions to shareholders since 2013.

Positive

• Acquisition of 1,670 acres of farmland expands portfolio and revenue potential.
• Strong consumer demand for blueberries, especially organic, supports future growth.
• Completed $162 million in new acquisitions in December alone, indicating robust growth.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / December 28, 2020 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land" or the "Company") announced that it has acquired approximately 1,670 total acres of farmland and facilities located San Joaquin County, California, and Whatcom County, Washington. The acquisition includes approximately 1,390 planted acres of organic and conventional blueberries, as well as a fresh packing and cooling facility. In connection with the acquisition, Gladstone Land entered into a 10-year, triple-net leaseback agreement with the seller.

"We are excited to complete these large acquisitions of fresh blueberry farmland and to be entering into a new partnership with an industry leader as a new tenant," said Joseph Van Wingerden, Director at Gladstone Land. "The consumer demand for fresh blueberries, especially organic, continues to expand rapidly. The newer, consumer-preferred varieties, planting methods, and water rights present on these farms position them very well for the long term."

"Despite the challenges that 2020 has brought to the overall market, we continue to add excellent fresh produce farmland, such as these properties, to our portfolio," said David Gladstone, President & CEO of Gladstone Land. "We have experienced particularly strong growth in the past few months, completing approximately $162 million of new acquisitions in December alone, and the year isn't over. We wish everyone a Merry Christmas and Happy Holidays. We hope everyone will eat a lot of fruits, vegetables, and nuts over the holiday season."

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 136 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 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 is the significance of Gladstone Land's recent acquisition in California and Washington?

The acquisition of 1,670 acres enhances Gladstone Land's farmland portfolio and aligns with the growing consumer demand for blueberries, particularly organic varieties.

How much did Gladstone Land spend on new acquisitions in December?

Gladstone Land completed approximately $162 million in new acquisitions in December 2020.

What type of lease agreement did Gladstone Land enter into with the seller?

Gladstone Land entered into a 10-year triple-net leaseback agreement with the seller for the acquired properties.

How many farms does Gladstone Land currently own?

Gladstone Land currently owns 136 farms, covering approximately 101,000 acres across 13 states.

What has been the trend in dividend payments for Gladstone Land shareholders?

Gladstone Land has paid 94 consecutive monthly cash distributions to shareholders since its IPO in 2013, increasing distributions 20 times over the last 24 quarters.