Business
Gladstone Land Amends Terms of its Series C Preferred Stock Offering
MCLEAN, VA / ACCESSWIRE / August 24, 2022 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") today announced the amendment of
About this update from Gladstone Land Corporation
[{"type":"text","content":"MCLEAN, VA / ACCESSWIRE / August 24, 2022 / Gladstone Land Corporation (Nasdaq:LAND) (\"Gladstone Land\" or the \"Company\") today announced the amendment of certain terms of the Company's $500 million continuous offering of its 6.00% Series C Cumulative Preferred Stock (the \"Series C Preferred Stock\") to limit total sales to no more than 10,200,000 shares (or up to $255 million) in the primary offering and to limit the number of shares to be sold under the dividend reinvestment plan to no more than 200,000 shares.As a result of today's amendment, the primary offering was reduced from 20,000,000 shares (approximately $500 million) to 10,200,000 shares (approximately $255 million), and the offering of the Company's Series C Preferred Stock will now terminate on the earlier of December 31, 2022, or the date on which all 10,200,000 shares of Series C Preferred Stock offered in the primary offering are sold. The Company has so far sold approximately $213 million of its Series C Preferred Stock since filing a prospectus supplement on April 3, 2020.Comments from David Gladstone, President and CEO of Gladstone Land: \"We began selling our Series C Preferred Stock in April 2020, after we completed our $150 million Series B Preferred Stock offering. Since launching the Series B Preferred Stock offering in May 2018, we've used the Series B and Series C proceeds to help grow our farmland holdings from 75 farms with approximately 63,000 acres worth about $543 million in mid-2018 to 169 farms with over 115,000 acres and 45,000 acre-feet of banked water worth a total of over $1.5 billion today. Having access to the independent broker-dealer and RIA markets has been invaluable for our growth and continues to enhance our breadth of capital sources.\"Mr. Gladstone added, \"our current farmland portfolio continues to perform well, and our existing debt remains very affordable for us, as over 99% of our current borrowings are fixed at a weighted-average cost of just 3.26% for the next five-plus years. However, the cost of new financing, including our undrawn lines of credit, is becoming more expensive, and we are seeing cap rates compress in many of our regions of focus. While overall farmland values continue to increase, rental rates in certain areas are not increasing quite as fast, and we believe it may take some time for rents to adjust to c...