November 26, 2019

By Lynda Kiernan

Real Estate Investment Trust (REIT) Gladstone Land announced it has raised more than $100 million through its continuous registered public offering of 6 million shares of its 6 percent Series B Cumulative Redeemable Preferred Stock.

The company first filed its prospectus supplement on May 31, 2018, and its first sale of Series B Preferred stock occurred nearly a month later, on June 25. 

The offering has recently passed its halfway-point, according to David Gladstone, president, Gladstone Land, who said, “We continue to be impressed by the reception of our Series B Preferred Stock offering in the independent broker-dealer and registered investment advisor channels. We passed the 50 percent mark just a short while ago and now we’re already beyond the $100 million milestone. With less than $50 million remaining in our Series B Preferred Stock offering, we’re excited to see the offering fully subscribed in the near term.”

Since its roll-out in May of last year, Gladstone has used the proceeds from the offering to further build out its farmland portfolio to approximately 87,000 acres valued at $876 million.

“We have now acquired more than $250 million worth of farmland so far in 2019,” said Gladstone.

Included in the deals of the year are:

January – Purchased a 695-acre farm in Lincoln County, Nebraska, for $2.4 million that rotates between producing popcorn, edible beans, and potatoes. The farm includes 600 acres of irrigated, tillable land and three on-site wells with updated pivots and electrical panels. 

April – Acquired California pistachio orchard operations for $28.6 million. Located in Chowchilla, California, the farm consists of 930 gross acres, of which 852 are planted in pistachio trees in their 11th leaf.

June – Made its second permanent cropping acquisition in three months, announcing its agreement to buy two Michigan farms totaling 516 acres for approximately $7.8 million. The two farms bring a combined total of 383 acres of blueberry bushes, and six acres of cranberry bogs, including farm-related assets of two blueberry processing facilities, and a fresh packing and cooling facility.

Also  paid $9.2 million to acquire 542 acres of farmland in Yolo County, California, that includes 482 acres of high-density olive orchards.

July – Acquired 324 acres of farmland in Salinas, California, for $9 million. The farm had previously grown vegetables and strawberries.

And, acquired 3,586 acres of farmland and facilities in South Florida for a total consideration of approximately $58 million. 

August – Announced it had acquired nearly 1,000 gross acres of farmland in Coalinga, California, for $33 million, consisting of a 911-acre orchard planted in mature pistachio trees.

September – announced two California farmland deals in quick succession, the first, the acquisition of a large coastal farm on the Oxnard Plain of California for an undisclosed amount,  and the second, the accession of a 366-acre vineyard in Napa for $32 million.

October – Announced it had expanded its portfolio into a new farming geography, having acquired 3,850 acres of farmland across two farms in Hayes and Hitchcock counties in Nebraska for $14.7 million. 

And in November – Announced it had closed on the second phase of a two-part pistachio orchard acquisition in Coalinga, California, for $37 million.

This Series B Preferred Stock offering is scheduled to end on June 1, 2023, or upon the date on which the entire 6 million shares offered are sold.

Because there is no current public market for Series B stock, Gladstone is planning to apply to list the Series B Preferred Stock on NASDAQ, or possibly another national securities exchange within a year of the termination date, however this is not a guaranteed achievement.

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.