Gladstone Land Corporation Announces Preferred Stock Offering

Rhea-AI Summary

Gladstone Land Corporation (NASDAQ:LAND) announced plans for a public offering of its Series D Cumulative Term Preferred Stock. The pricing and terms will be negotiated with underwriters, who may also purchase additional shares. Proceeds will fund the redemption of outstanding Series A Preferred Stock, property acquisitions, and other corporate needs. The company, which owns around 137 farms valued at approximately $1.2 billion, has maintained a consistent monthly distribution to shareholders since its IPO in January 2013.

Positive

• Plans to redeem outstanding Series A Cumulative Term Preferred Stock, potentially improving capital structure.
• Public offering may enhance liquidity for property acquisitions and corporate initiatives.

Negative

• None.

MCLEAN, VA / ACCESSWIRE / January 12, 2021 / Gladstone Land Corporation (NASDAQ:LAND) (the "Company") today announced that it plans to sell shares of its newly-designated Series D Cumulative Term Preferred Stock (the "Series D Preferred Stock") in an underwritten public offering. The public offering price and other terms are to be determined by negotiations between the Company and the underwriters. The Company also plans to grant the underwriters a 30-day option to purchase additional shares of Series D Preferred Stock, on the same terms and conditions, solely to cover over-allotments, if any. Janney Montgomery Scott, B. Riley Securities, D.A. Davidson & Co., Ladenburg Thalmann and Oppenheimer & Co. are serving as the book-running managers for the offering.

The Company intends to use the net proceeds from its offering of the Series D Preferred Stock (the "Offering") to fund the optional redemption of all of its outstanding Series A Cumulative Term Preferred Stock, to fund property acquisitions and to pay related property acquisition expenses, and for other general corporate purposes. Such optional redemption will be contingent upon the closing of the Offering.

Prospective investors in the Series D Preferred Stock are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement, dated January 12, 2021, and the accompanying prospectus dated April 1, 2020, which have been filed with the Securities and Exchange Commission (the "SEC"), contain this and other information about the Company and should be read carefully by prospective investors before investing.

The Offering is being conducted as a public offering under the Company's effective shelf registration statement filed on Form S-3 with the SEC (File No. 333-236943). To obtain a copy of the preliminary prospectus supplement, dated January 12, 2021, and the final prospectus supplement (when available) for this offering, please contact: Janney Montgomery Scott LLC, 1717 Arch Street, Philadelphia, PA 19103, Attention: Fixed Income Capital Markets or prospectus@janney.com.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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 137 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 95 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.

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 these 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 captions "Forward-Looking Statements" and "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 19, 2020, the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, as filed with the SEC on May 6, 2020, August 5, 2020 and November 4, 2020, respectively, and our other filings with the SEC including the preliminary prospectus supplement and the final prospectus supplement (when available). 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 further information: Investor Relations, +1-703-287-5893

SOURCE: Gladstone Land Corporation

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FAQ

What is Gladstone Land Corporation's stock symbol?

Gladstone Land Corporation's stock symbol is LAND.

What is the purpose of the Series D Preferred Stock offering by LAND?

The offering aims to redeem outstanding Series A Cumulative Term Preferred Stock, fund property acquisitions, and cover related expenses.

Who are the underwriters for the Series D Preferred Stock offering?

The underwriters for the offering include Janney Montgomery Scott, B. Riley Securities, D.A. Davidson & Co., Ladenburg Thalmann, and Oppenheimer & Co.

How many farms does Gladstone Land Corporation own?

Gladstone Land Corporation owns approximately 137 farms across 13 states.

What is the value of the farmland owned by Gladstone Land Corporation?

The aggregate fair value of Gladstone Land Corporation's farmland holdings is approximately $1.2 billion.

How long has Gladstone Land Corporation paid monthly distributions to shareholders?

Gladstone Land Corporation has paid monthly distributions for 95 consecutive months since its IPO in January 2013.