Gladstone Land Acquires Nut Orchard and Option to Purchase Stored Water in California
August 24, 2021 at 08:45 AM EDT
MCLEAN, VA / ACCESSWIRE / August 24, 2021 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land") announced that it has acquired 479 gross acres of farmland, including approximately 460 planted acres of almonds, located in Kern County, California, and 5,000 acre-feet of stored water (equal to approximately 1.6 billion gallons) located within the Semitropic Water Storage District water bank for a total of approximately $14.8 million. In connection with the acquisition, Gladstone Land entered into a 10-year, triple-net lease agreement for the farmland. This is the second closing of a three-part acquisition that is expected to result in total consideration of approximately $84.2 million. The third closing is currently scheduled to close later this year.
"We are excited to announce the completion of the second phase of this acquisition," said Bill Reiman, Executive Vice President of Gladstone Land. "We are looking forward to completing the final phase of this transaction and adding this asset to our portfolio. The stored water and tenant have already added value to our business, and we expect this to continue to be the case."
"We are pleased to be expanding our relationship with a strong tenant who has a long history of farming in the area," said David Gladstone, President and CEO of Gladstone Land. "All of our farms continue to have adequate water. We believe the additional water we're buying in this transaction will help ensure that the production on this farm remains at high levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water."
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 158 farms, comprised of approximately 107,000 acres in 14 different states and over 25,000 acre-feet of banked water in California, valued at over $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. Gladstone Land 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 each 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:
Lenders who are interested in providing Gladstone Land 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:
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:
SOURCE: Gladstone Land Corporation
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