Gladstone Land Corporation Continues to See Strong Demand for Its Farmland in Lease Renewals
MCLEAN, Va., June 26, 2014 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq:LAND) (the "Company") announced today that it has entered into the third of three lease renewals over the course of the previous nine months, all at an increase in rental rates. The renewal terms range from six to nine years, with an average increase in annual straight-line rental income of 21.0%. The aggregate increase in rental income will be approximately $470,000 per year. Each lease also has a reset provision to market rates at various times over its term.
"These increased rents are an indication of how farmland continues to increase in value. The increases in rents and the value of the farmland are the central thesis of our investment strategy. We are pleased to continue our relationship with the tenant on two of the lease renewals, and we are excited to begin a new relationship with the farmer tenant on the third lease," said David Gladstone, President and CEO of the Company.
About Gladstone Land Corporation:
Gladstone Land is seeking to be a real estate investment trust that pays monthly dividends to its stockholders. The Company invests in farmland located in major agricultural markets in the United States that it leases to corporate and independent farmers and intends to report the current value of its farmland on a quarterly basis. As of March 31, 2014, the net asset value of the Company was $14.03 per share. The Company currently owns 6,439 acres on 26 farms in 5 different states across the U.S., appraised at an aggregate value of approximately $132 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow row crops, such as berries and vegetables, which are planted and harvested annually or more frequently, as well as more permanent crops, such as blueberries. The Company also may acquire property related to farming, such as storage facilities utilized for cooling crops, processing plants, packaging facilities and distribution centers. The Company has paid 16 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current dividend is $0.03 per share per month. Additional information can be found at www.GladstoneLand.com.
Owners or brokers who have farmland for sale in the United States should call (703) 287-5839 to talk to a person at the company that can make an offer on the farmland.
For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.Gladstone.com and www.GladstoneCompanies.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, 2013, as filed with the SEC on February 24, 2014. 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.
CONTACT: For further information: Gladstone Land, 703-287-5893
Released June 26, 2014