MCLEAN, VA - In the summer of 2023, Gladstone Land Corporation announced the sale of Florida acreage to the tune of $9.6 million. Now, the company is making news once more as it has completed the sales of a farm in the Sunshine State for approximately $65.7 million.
"Our strategy is generally to buy and hold for the long term, but occasionally we receive an offer that warrants serious consideration. We intend to use a portion of these proceeds to retire $16 million of debt, as well as for other general corporate purposes. Overall, prices of farmland continue to grow over long-term holding periods, and we believe this is yet another transaction that demonstrates this thesis," said David Gladstone, President and Chief Executive Officer of Gladstone Land.
The investment in this farm provided a 60 percent return on equity, and the sale price reflected a 22 percent increase over the original purchase price, a release detailed.
While this farm has paid dividends for Gladstone Land, the company still has a large portion of land that could lead to future opportunities.
"We acquired this property seven years ago through a sale-leaseback with a large vegetable operation. In 2023, we received an offer to purchase the property at a compelling valuation and elected to proceed with the sale. We still own nearly 3,500 acres of farmland that is contiguous to this property being sold, and we plan to hold that property for years to come," said Bill Frisbie, Executive Vice President of Gladstone Land.
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