MCLEAN, Va., July 17, 2017 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (NASDAQ:LAND) announced today that it has acquired four contiguous farms totaling 847 gross acres in Fresno County, California, for approximately $13.6 million. In total, the farms contain approximately 327 acres of pistachio trees and 318 acres of almond trees, all planted between 2002 and 2009. Upon acquisition, Gladstone Land entered into a leaseback agreement with the seller, a leading almond and pistachio grower, harvester, and processor, for a 10-year, triple-net lease that includes one, 5-year extension option. The lease consists of a fixed cash rent component plus a revenue-sharing component based on the crops harvested on the farms.
“This acquisition is another fine example of the productive relationships we have developed with our tenants,” said Bill Reiman, Gladstone Land’s Managing Director for the Western United States. “The sale-leaseback transaction is a hallmark of our investment thesis, and we hope to continue providing this service to current and new tenants all over the Western United States.”
“This acquisition allows us to continue to grow our portfolio of farmland focused on growing healthy products, such as fresh produce and nuts,” said David Gladstone, President and CEO of Gladstone Land. “The lease on this property should allow us to generate strong returns, thereby helping us to achieve our goal of regularly increasing the distributions we pay to our shareholders. We have increased the distributions rate on our common stock in each of the past four quarters.”
About Gladstone Land Corporation:
Gladstone Land is a publicly-traded real estate investment trust that invests in farmland located in major agricultural markets in the U.S., which it leases to farmers, and pays monthly distributions to its stockholders. The Company intends to report the current fair value of its farmland on a quarterly basis; as of March 31, 2017, the estimated net asset value of the Company was $14.47 per share. Gladstone Land currently owns 69 farms, comprised of 58,777 acres in 8 different states across the U.S., valued at approximately $504 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are planted and harvested annually or more frequently; as well as permanent crops, such as almonds, blueberries, and pistachios, which are planted every 10 to 20-plus years. The Company also may acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land has paid 53 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013, and the current per-share distribution on its common stock is $0.044 per month, or $0.528 per year. Additional information can be found at www.GladstoneLand.com and www.GladstoneFarms.com.
