MCLEAN, VA - Gladstone Land Corp. is once again on the move, this time looking to expand on its portfolio as well as its acreage with the purchase of more than 400 acres in Fresno County, California.
"We are pleased to purchase our first pistachio farm and enter into a lease agreement with another highly-respected operator," David Gladstone, President and CEO of the company, said in a press release. "This farm allows us to further diversify our portfolio by crop type, which we believe will help reduce risks.”
The 453 acres purchased for approximately $15.5 million (about $34,200 per acre) is of planted pistachio trees ranging from 5 to 19 years old. Already in production, Gladstone will be receiving rent payments, both fixed cash rents and crop share cash payments based on revenues, immediately.
"We are excited to announce another acquisition that continues to diversify our high-value agricultural portfolio," Bill Reiman, Gladstone's Managing Director for the Western United States, stated in the release, calling the land young and healthy. "Adding the first pistachio orchard to our portfolio and one of California's premier nut growers as a tenant shows our dedication towards broadening our exposure to high-value crops and our ability to source great properties.”
Additionally, Gladstone added that it entered into a leaseback agreement with the seller for a 10-year, triple-net lease that includes one 5-year extension option consisting of a fixed cash rent component. The agreement also includes a variable rent component based on the gross crop revenues earned on the property.
The farm includes three wells, two of which are new, according to Reiman, who added that both the immediate and long-term production potential of the acreage should be tremendous.
As of this morning at 9:37 a.m. Pacific, Gladstone Land’s stock was up 1.64%.
As for the company’s projected performance for 2016, Gladstone was optimistic.
“We are looking forward to a strong performance in 2016 for our company after purchasing more than $41 million in new farms so far this year,” Gladstone said, expressing enthusiasm for this latest market. “Our board will meet later this month to review our projections and vote on our next quarterly distribution payments, so please stay tuned, and eat more pistachios!"
Are there more big land purchases for Gladstone in the future? AndNowUKnow will continue to report as the company seeks further growth throughout fiscal 2016 and beyond.
