July 5, 2016

Gladstone Land Corp. announced it has added to its portfolio with the acquisition of 401 acres of farmland in St. Lucie County, Florida for a consideration of $5.1 million.

Under the terms of the deal, Gladstone will enter into a seven-year lease agreement with a local leading vegetable grower who will run the bell pepper and green bean operation.

“We have built our farmland portfolio based on the idea that the produce section of the grocery store is a good place to base our business because returns on fruits, vegetables and nuts have been growing at a stronger pace than other areas of the food sector, and we believe that trend will continue,” said David Gladstone, president and CEO of Gladstone Land in a statement.

This deal brings Gladstone’s portfolio to 48 farms totaling 23,857 acres across seven U.S. states with an approximate value of $339 million. The company’s acreage is concentrated on row crops including vegetables and berries, and permanent crops such as pistachios, blueberries and almonds.

“We like being real estate partners with farmers, and we seek to buy farms that grow fresh fruits and vegetables that are healthy for people to eat,” said David Gladstone.

Recent acquisitions made by Gladstone include the April purchase of a 453 acre property in Fresno, California that includes 435 acres planted in pistachio trees ranging between five and 19 years old for $15.5 million, making the company’s first entry into the pistachio industry.

“This farm allows us to further diversify our portfolio by crop type, which we believe will help reduce risks,” commented David Gladstone about the deal in a company statement.

Only one month prior to that purchase, Gladstone announced the acquisition of 6,190 acres of farmland in Colorado for $19.3 million in cash plus 745,879 units of common stock in the company’s operating partnership, translating to a total deal consideration of $25.9 million.

“The San Luis Valley has been attractive to us for some time, and we are proud to own a great farm there,” said Bill Hughes, Gladstone Land’s Director for the Midwestern United States. “This farmer is an innovator in the potato industry and they are leaders in water conservation. We look forward to a multi-generational relationship with them as our partner.”

Gladstone Land has now paid out 41 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013.  The current per-share distribution is $0.04125 per month, or $0.495 per year.

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Lynda Kiernan