Business
Gladstone Land Announces Gain on Sale of Five Farms
MCLEAN, VA / ACCESS Newswire / January 29, 2025 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land" or the "Company") announced that it has completed
About this update from Gladstone Land Corporation
[{"type":"text","content":"MCLEAN, VA / ACCESS Newswire / January 29, 2025 / Gladstone Land Corporation (NASDAQ:LAND) (\"Gladstone Land\" or the \"Company\") announced that it has completed the sale of a property in Florida (consisting of five farms) for $52.5 million. The investment in this property provided a 112% return on equity invested, and the sale resulted in a net capital gain for the Company.\"This property was acquired less than seven years ago through a purchase from a large landholder in Immokalee, Florida,\" said Brett Smith, Director of the Southeastern U.S. at Gladstone Land. \"In late 2024, we received an offer to purchase the property at a compelling valuation and elected to proceed with the sale. We still own over 13,000 acres of farmland in Florida.\"\"Our strategy is generally to buy and hold properties for the long term; however, we are willing to listen to offers for our farms if the price is right and we believe it to be in the best interest of the Company and its shareholders,\" said David Gladstone, President and CEO of Gladstone Land. \"We intend to use a portion of the proceeds from this sale to retire approximately $19 million of debt on the property that was scheduled for an interest rate repricing later this year.\"In the past, we focused on holding farms for the long term and leasing them in exchange for cash rental payments. However, with interest rates remaining high, we are exploring alternative options with certain of our farms, including some strategic sales and, at times, entering into agreements where we finance a portion of the planting, growing, and harvesting costs on certain farms in exchange for receiving a larger share of the resulting crop sales.\"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, currently owns 152 farms, comprised of approximately 106,000 acres in 15 different states and over 55,000 acre-feet of water assets in California, valued at a total of approximately $1.4 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 pl...