Gladstone Land Corporation Announces Third Quarter Results as It Surpasses $1B Portfolio Milestone
MCLEAN, VA - Cresting a new milestone is no small achievement, this year especially. And, in the case of Gladstone Land Corporation, it is a marker worth celebrating as the company saw its portfolio swell over $1 billion.
“The company has acquired approximately $75 million of new farms over the past two months, and the team has a robust list of farms they are seeking to acquire over the next several months. We recently surpassed $1 billion in total farmland value, which is a testament to the hard work of this team. The team also continued to have success with lease renewals, and we believe the increased net rental rates on these renewals indicate the strong demand for, and continued appreciation in value of, the company's farms,” David Gladstone, President and CEO, commented in a release of the company’s third quarter financial report.
In total for the quarter, the company acquired eight new farms for approximately $39.2 million, consisting of 3,473 total acres across three different states. Two of those three were new markets for Gladstone. Additionally, the team executed four new lease agreements on farms in two different states, California and Florida, which it noted are expected to result in an aggregate increase in annual net operating income of approximately $181,000, or 11.3 percent, over that of the prior leases, according to the report.
With the valuation increases experienced during the quarter, which ended September 30, coupled with these acquisitions, the value of Gladstone’s farmland holdings surpassed $1.0 billion in fair value.
“The impact on the company's farms and farmers as a result of COVID-19 continues to be minimal, as most tenants on the Company's farms sell their products to grocery stores, with very little of their sales going to restaurants and other segments of the food service industry,” Gladstone continued, adding that, based on current pricing and sales volumes at most grocery stores, the tenants on the company's farms seem to be in a good position right now with very few exceptions.
To read the report and his comments in full detail, click here.
Though Gladstone and his team reported none of its farms suffered any significant damage as a result of the recent wildfires in California or hurricanes in the southeastern U.S., they noted their thoughts are always with those farmers and families who were negatively impacted.
With increased distributions and what appears to be more on the horizon, Gladstone Land looks to have more in store before fiscal 2020 is put to rest.