MCLEAN, VA - Organics are once again growing in Gladstone Land Corporation’s portfolio of farmland with the addition of a new organic almond orchard in California for approximately $5.9 million. The orchard will now be Gladstone Land’s under a 20-year, triple-net sale-leaseback agreement that consists of a fixed cash rent, plus a variable rent component based on the annual gross crop revenues earned on the property.
"We are excited to add another organic, high-yielding farm to our farmland holdings. Recently, pricing for organic almonds has been at a premium of more than 100 percent over that of conventional pricing, with forecasted demand continuing to outpace supply,” explained President and CEO David Gladstone, in a statement, in which the company also announced it would be expanding its existing credit facility with MetLife, increasing the overall size from $200 million to $275 million.
“In addition, the expansion of our credit facility with MetLife should allow us to continue to acquire additional farms and increase the overall diversity of our farmland holdings,” added Gladstone. “Our hope is that the additional income from this new almond orchard and the added ability to acquire more farms from the facility expansion will allow us to continue to increase the distributions we pay to our shareholders. Please keep eating plenty of almonds and other healthy foods!”
As of September 30, 2017, the company’s estimated net asset value was $14.15 per share. Gladstone Land currently owns 73 farms, comprised of 63,014 acres in 9 different states across the U.S., valued at approximately $534 million.
"We are pleased to announce the addition of another almond orchard to our farmland portfolio," added Bill Reiman, Western Managing Director. "This farm is 100% organic and is currently in peak production, which should ensure excellent returns for us in the coming years. We have a long-term lease in place with a tenant whom we have a strong and established relationship with. We are always willing to help our current tenant-partners with their farmland needs."
As Gladstone Land continues to keep its eyes on new land acquisitions and diversifying its portfolio with fresh produce, AndNowUKnow will update you with the latest.
