Real Estate Investment Trust, Gladstone Land Corporation has announced that it has acquired two farms totaling 2,559 acres with 2,101 acres of pivot-irrigated acres in Rock and Holt Counties, Nebraska for $11 million.

 

Under the terms of the deal, Gladstone has agreed to a three-year lease that allows for annual rent increases, and has issued two $3.3 million, three-year interest only bonds with a fixed interest rate of 2.375%, issued under its $75 million facility with Federal Agricultural Mortgage Corporation (Farmer Mac).

 

This transaction brings Gladstone’s portfolio to a total of 38 farms totaling 14,027 acres across six states valued at $242 million, and represents the REIT’s first acquisitions in Nebraska. The deal also indicates a shift toward diversification for Gladstone, which plans to add potatoes, edible beans and alfalfa to its portfolio of traditional corn and soybean farms.

 

"With our first Midwest acquisitions, we are continuing to diversify our portfolio of farmland properties, as well as the crops being grown on the land we lease to our tenant-farmers," said company president and chief executive officer, David Gladstone.  "Our objective is to acquire prime farmland and become long-term real estate partners with the farmers on the land.  We believe these two farms have excellent soil and plenty of wells for irrigation.” 

 

Mr. Gladstone adds that the company is planning to close on one additional large farm before the end of September.