MCLEAN, VA – Gladstone Land Corporation has completed a secured bond purchase agreement with the Federal Agricultural Mortgage Corporation ("Farmer Mac"). With this agreement, Gladstone has been extended a line of credit valued at a long-term total of $75 million.
"We are very pleased to add a third credit provider to help us to grow our company," said David Gladstone, Chairman of the Company. "We have a large number of farms that we would like to purchase in the near-term future, and we believe the timing of this new facility is particularly helpful by providing us with the financing we require for these potential acquisitions, given the current state of the equity capital market.”
“We are excited to partner with Farmer Mac, as we believe this new facility provides us with favorable terms and the flexibility to allow us to continue the desired growth of our portfolio,” he continued. “In addition, some callers have asked about the drought in California and the significant rain storms that are now occurring there. Despite these environmental adversities, all of our farms are currently doing fine. There have also been questions regarding a potential dividend increase. The quarter ended September 30, 2014, was a good one for us, but with the farms we acquired during that period only being on the books for a portion of the quarter, their full impact on earnings won't be felt until the quarter ending December 31, 2014. Further, we believe that the farms we've acquired during the third and fourth quarters will improve our future performance and allow our board to consider the possibility of a dividend increase in early 2015."
Gladstone has been busy in 2014, acquiring vast tracts of land throughout the United States in:
- 65 acres in Ventura County, CA
- 332 acres in Ventura County, CA
- 808 acres in Manatee County, FL
- 3,522 acres throughout California and Florida
- 390 acres in the San Joaquin Valley and Oxnard, CA
- 94 acres in Dover, FL
- 145 acres in Watsonville, CA
While Gladstone has not yet shared exactly where they are looking for their next purchase, $75 million gives them a lot of options.
According to a press release, Gladstone owns 32 farms, totalling 8,039 acres in 5 different states across the U.S., valued at approximately $191 million.
