January 24, 2019

Agricultural real estate investment trust (REIT) Gladstone Land has made its first acquisition of 2019, announcing the purchase of a 695-acre farm in Lincoln County, Nebraska, for $2.4 million.

With 600 acres of irrigated, tillable land and three on-site wells with updated pivots and electrical panels, the farm rotates between producing popcorn, edible beans, and potatoes.

As is standard procedure for Gladstone, upon the acquisition, the company is engaging the seller, Malmkar Farms of Grant, Nebraska, in a long-term lease agreement on the property.

“This is the first of what we hope will be many new acquisitions during 2019,” said David Gladstone, president and CEO of Gladstone Land.  “This farm has good water, grows some specialty crops that aren’t as volatile in pricing as certain other types of crops in the region, such as corn, and add another established and long-term operator to our list of farm tenants.”

These combined factors are indicative to Gladstone that the deal relatively low risk investment, and will be accretive to the company and its shareholders.

“This farm is located in an area of Nebraska known for good water and specialty crop production,” said Bill Hughes, managing director of Gladstone Land. “We look forward to opening up this new region and adding edible beans and popcorn to our already diverse crop portfolio. We anticipate our relationship with such a respected and established operator as Malmkar Farms will provide us with opportunities to add even more acres of specialty crops to our holdings.”

One Potato, Two Potato

This deal is the first since November 2018 for the company, and its second potato-growing operation, since it acquired a 3,667-acre potato farm in Hartley County, Texas, for $8.5 million.

The farm, which primarily grows chip potatoes, includes 2,200 acres of irrigated land, and brings with it very reliable water, with 12 wells and 19 pivots on site.

Gladstone was making deals at a breakneck pace in the final quarter of last year. This was the second deal announced by the company within the month, following the acquisition of a 951-acre farm in Madera County, California, that includes 715 acres of mature fig orchards, and 224 acres of mature pistachio orchards for $23 million.

Prior to this, in September of last year, Gladstone announced three deals. First, the acquisition of a 547-acre farm in northern Florida growing peanuts and melons for $2.6 million, followed days later by the additional acquisition of two more permanent crop farms totaling 194 acres of cherry orchards in Kings County, California, for approximately $6.9 million.

Gladstone’s latest acquisition brings its portfolio to 86 farms totaling 73,900 acres across 10 U.S. states, and valued at $621 million. Its holdings are concentrated in fresh produce annual row crops, and permanent crops including almonds, pistachios, and blueberries.

-Lynda Kiernan