Publicly traded agricultural real estate investment trust (REIT), Gladstone Land Corp. has announced a 14.3% increase in its monthly cash distribution for the months of April, May, and June 2015.
As a REIT, Gladstone is required to distribute a minimum of 90% of its taxable income to its shareholders, and because it invests in farmland, there is very low depreciation reducing its taxable income unlike other REITs. The farmland that the trust acquired in the first quarter of 2015, combined with the expected closings in the second quarter, have established an economy of scale in the group’s portfolio, and have increased projected earnings.
So far for the year, Gladstone has increased its distribution by 33.3%, and if the groups meets its projections for the coming months, it is optimistic that additional increases in distribution will occur before the end of year.
Since its initial public offering (IPO) in January 2013, the company has paid 26 consecutive monthly cash distributions on its common stock. The average yield on all REIT stock is approximately 3.7%, which Gladstone has already surpassed.
Since the latest increase, the new per-share cash distribution rate is $0.04 per month, or $0.48 per year.
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