Gladstone Land Acquires Farms in Colorado
MCLEAN, Va., Sept. 06, 2016 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (NASDAQ:LAND) (“Gladstone Land” or the "Company") announced today that it has acquired 7,384 acres of farmland across 5 farms in Baca County, Colorado, for total consideration of approximately $4.9 million in cash and 125,677 common units of limited partnership interest in the Company’s operating partnership (“OP Units”). The OP Units issued were valued at $12.93 per unit, resulting in total consideration of approximately $6.5 million.
In addition, Gladstone Land entered into a triple-net lease agreement with the existing operator on the property for an initial term that runs through 2020 and includes one, 5-year extension option. The initial term of the lease provides for annual rent escalations and an overall, straight-line capitalization rate of 5.91%.
“Gladstone Land is fortunate to team up with one of the top-tiered operators in the area. Our tenant has farmed in Southeast Colorado for decades with an operation that specializes in providing a high-fiber hay blend for the cattle feed-lot industry,” said Bill Hughes, Gladstone Land’s Midwest Managing Director. “This dryland farm acquisition is a great example of how we can add profitable assets to the portfolio while conserving water resources. Completing this purchase in a new region and of a new crop specialty will expand our geographic footprint and further diversify the crop types on our farmland holdings.”
“We have added another great property to the portfolio of farms we own, and these new farms should yield strong returns for us, while also expanding the types of crops grown on our farms, as diversification is a key part of our strategy,” said David Gladstone, President and CEO of the Company. “The soil on these farms is ideally suited to grow a high-quality hay crop to serve the feed-lot industry. While this acquisition may appear to be outside of our typical focus, these farms are able to grow other types of crops, as well, and the alfalfa crop on the property is a type of permanent crop that will produce for several years without the need for new plantings, thus meeting our criteria for yield sustainability. Our acquisition backlog remains robust, and there are several other farms we are seeking to purchase during the remainder of 2016, which is shaping up to be another good year for the Company.”
About Gladstone Land Corporation:
Gladstone Land is a real estate investment trust that invests in farmland located in major agricultural markets in the U.S., which it leases to farmers, and pays monthly distributions to its stockholders. The Company intends to report the current fair value of its farmland on a quarterly basis; as of June 30, 2016, the estimated net asset value of the Company was $13.68 per share. Gladstone Land currently owns 54 farms, comprised of 31,313 acres in 7 different states across the U.S., valued at approximately $350 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are planted and harvested annually or more frequently; as well as permanent crops, such as almonds, blueberries, and pistachios, which are planted every 10 to 20-plus years. The Company also may acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land has paid 42 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.04125 per month, or $0.495 per year. Additional information can be found at www.GladstoneLand.com and www.GladstoneFarms.com.
Owners or brokers who have farmland for sale in the U.S. should contact:
Eastern U.S. – Bill Frisbie at (703) 287-5839 or bill.f@gladstoneland.com
Western U.S. – Bill Reiman at (805) 263-4778 or bill.r@gladstoneland.com
Midwest U.S. – Bill Hughes at (618) 606-2887 or bill.h@gladstoneland.com
For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.Gladstone.com.
All statements contained in this press release, other than historical facts, may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" and variations of the foregoing words and similar expressions are intended to identify forward-looking statements. Readers should not rely upon forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the Company's business, financial condition, liquidity, results of operations, funds from operations or prospects to differ materially from those expressed in or implied by such statements. Such risks and uncertainties are disclosed under the caption "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the SEC on February 23, 2016. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For further information: Gladstone Land, 703-287-5893
Released September 6, 2016