Business
Gladstone Land Acquires Pecan Orchard in California
MCLEAN, Va., June 08, 2020 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq: LAND) (“Gladstone Land” or the “Company”) announced that it has acquired
About this update from Gladstone Land Corporation
[{"type":"text","content":"MCLEAN, Va., June 08, 2020 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq: LAND) (“Gladstone Land” or the “Company”) announced that it has acquired 590 gross acres of farmland in Kern County, California, for approximately $14.2 million. The farm consists of 554 planted acres of mature pecan trees. In connection with the acquisition, Gladstone Land also entered into a 15-year, triple-net leaseback agreement with the seller.\n “We like sale-leaseback transactions, as it is a wonderful way for us to grow our portfolio, and it also frees up cash for our tenants to further grow their businesses. This acquisition is just that, and it gets us into a desirable farming region we have not entered before and forges a new relationship with a long-time farmer in the business,” said Bill Reiman, Managing Director of Gladstone Land. “We are excited about this farm because of its good water, soil, and microclimate. In addition, since we did not buy the trees but only the land, we view this as a lower-risk investment, further diversifying our California portfolio.” “The acquisition of this pecan orchard adds a new permanent crop type to our portfolio and should result in another good, long-term investment for us,” said David Gladstone, President and CEO of Gladstone Land. “In addition, in connection with this transaction, we are forming a new relationship with a very seasoned grower who has been in the pecan business for many years. We are continuing to evaluate a good list of potential farms to buy, as we work towards another strong year in 2020 after a record year of acquisitions in 2019. Our goal is to continue to buy great farms with strong tenants and to increase the distributions on our common stock each quarter.” 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 115 farms, comprised of approximately 89,000 acres in 10 different states, valued at approximately $909 million. Gladstone Land’s farms are predominantly located in regions where its tenants are able to grow fresh produce annual r...