Virginia-based Gladstone Land Corp. has announced through a company statement that the firm has acquired 1,239 acres, including 840 acres of irrigated, farmable acres in Arizona, for $5.7 million. As part of the deal, Gladstone has entered into a leaseback agreement with the selling party for a ten-year, triple-net lease that includes yearly rent increases and two five-year extension options.

 

“This investment allows us to continue to grow our asset base of high-quality, irrigated farmland that is rented to top-tier tenants,” said David Gladstone, President and CEO of the company.  “Our recent offering will allow us to acquire additional farms, which, through both income return and value appreciation, should result in investments that continue to be accretive to our bottom line and permit us to cover our distributions to stockholders.”

 

Mr. Gladstone adds that in contrast to non-irrigated farmland in the U.S. Midwest, Gladstone’s portfolio of irrigated farmland has continued to increase in value each year since the firm gained ownership, and has remained 100% tenant-occupied, with all tenants current on their lease payments.

 

With this transaction and after a successful year of acquisitions, Gladstone now controls a portfolio of 43 farms consisting of 16,810 acres across six U.S. states with a value of approximately $275 million. The farms mainly produce row crops including berries and vegetables, and permanent crops such as almonds and blueberries. Gladstone is also considering acquiring farming-related properties and assets such as cold storage facilities, processing and packaging facilities, and distribution centers.

 

The company has paid out 34 consecutive cash distributions on its common stock since its float in January 2013, and the current per-share distribution is $0.48 per year.