April 10, 2019

Gladstone Land continues to work to build out a well-curated and diversified portfolio of permanent crop operations, announcing it has acquired California pistachio orchard operations for $28.6 million.

The farmland, located in Chowchilla, California, consists of 930 gross acres, of which 852 are planted in pistachio trees in their 11th leaf. In connection with the deal, Gladstone has entered into a 10-year, triple-net lease with The Specialty Crop Company, Inc., one of the world’s top nut growers, and the single largest grower of fresh and dried figs in the world.

This deal echoes another executed by Gladstone in November of last year, when the company  acquired a 951-acre farm in Madera County, California, that included 715 acres of mature fig orchards, and 224 acres of mature pistachio orchards for $23 million. The Specialty Crop Company also was engaged in an eight-year, triple net lease for that parcel as well.

“We are delighted to add another large pistachio orchard to our growing number of farms,” said Bill Reiman, managing director of Gladstone Land. “This acquisition was driven by one of our strong tenant relationships. There are many opportunities for us to grow our farmland assets by teaming up with great producers, and this acquisition is a prime example of that.”

A Place of Permanence

As consumption trends have continued to shift toward healthy eating and wellness, Gladstone’s latest acquisitions have strengthened its standing in the production of fresh fruits and nuts.

In September of 2017 Gladstone made a flurry of permanent crop farming deals, acquiring White Hawk Vineyard – a 361-acre wine grape vineyard located in Santa Barbara County, California, for $5.4 million, and a 746-acre organic permanent crop farm in Walla Walla, Washington, growing apples, wine grapes, and cherries, for $9.5 million.

In December of that same year, Gladstone announced the acquisition of a California organic almond orchard for $5.9 million, and in 2018 the company acquired two California farms totaling 194 acres of cherry orchards for approximately $6.9 million, followed by the November purchase of the 951-acre fig and pistachio property mentioned above.

“Pistachios are an exciting growth area for us,” said David Gladstone, president and CEO of Gladstone Land, commenting on the company’s latest acquisition.

“This orchard is located in an area with attributes conducive for growing pistachios, such as optimal climate conditions and good access to water. Our tenant, The Specialty Crop Company, is an ideal partner for us as we continue to add farmland growing specialty crops to our farmland holdings. And like most of our tenant-farmers, they are growing foods that are considered to be healthy.”

Gladstone’s current portfolio stands at 87 farms, totaling 74,828 acres across 10 U.S. states, carrying a value of $649 million. Under its business thesis, the company operates as a real estate investment trust that invests in and owns farmland and related properties which are leased to third parties. Its acreage is predominantly located in major agricultural markets where tenants are able to grow fresh produce, and annual row crops such as vegetables, peanuts, melons, and berries; or permanent crops including blueberries, cherries, almonds, and pistachios.  The company remains open, however, to the possibility of adding ancillary assets such as cooling facilities, processing plants, packaging facilities, or distribution centers to its holdings.

-Lynda Kiernan