March 3, 2016

Gladstone Land announced it has acquired 6,190 acres of farmland in Colorado for $19.3 million in cash plus 745,879 common units of limited partnership shares in the company’s operating partnership, translating to a total deal consideration of $25.9 million.

Through this deal, which is Gladstone’s first in the state of Colorado, the company will acquire 39 pivot-irrigated fields that are either currently being farmed organically or are in the process of transitioning to organic production, as well as potato packing and storage facilities and related infrastructure.

Under the terms of the sale, Gladstone entered into a sale-leaseback agreement with the seller, Mountain Valley Produce LLC – a vertically integrated organic potato producer, for a five-year, triple net lease including annual rent escalations and a single five-year extension option. Gladstone also announced the issuing of two seven-year bonds with the Federal Agriculture Mortgage Company (Farmer Mac) for an aggregate amount of approximately $15.5 million, which will bear interest at a fixed, weighted average rate of 3.05% over their term.

“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 in a company statement. “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.”

This transaction brings Gladstone Land’s portfolio to a total of 46 farms totaling 23,000 acres across seven U.S. states, with an approximate value of $311 million. The bulk of the company’s holdings consist of farms producing fresh produce annual row crops, as well as permanent crops including vegetables and berries. The company plans to continue expanding, as well. President of Gladstone Land, David Gladstone says, "We have more farms we are working on to consider adding to our assets this year so stay tuned and eat more potatoes!”