Gladstone Land Acquires 16,595 Acres of Colorado Farmland
MCLEAN, VA - Gladstone Land Corporation closed out 2016 on a high note, scooping up one more acquisition before the ball dropped.
The company announced that on December 28 it acquired 16,595 acres of farmland across one large, contiguous farm in Baca County, Colorado, for total consideration of approximately $9.1 million, or just under $550 an acre, in cash. Additionally, the deal included 233,952 common units of limited partnership interest in its OP Units, according to a press release, which were valued at $12.93 per unit, resulting in the total consideration of $12.1 million.
"This is a very strong acquisition to finish the year," said President and CEO David Gladstone.
In brief review; Gladstone Land made more than eight acquisitions in 2016 in California, Florida, and Colorado. It’s last Colorado purchase, in March of 2016, was for approximately $19.3 million in cash, or $3,117 per acre of farmland, and 745,879 common units of limited partnership in OPS Units.
"Similar to our most recent purchase in Colorado, the soil on this farm is ideally suited to grow high-quality crops to serve the cattle industry,” David Gladstone continued. “This acquisition was another opportunity to partner with a very strong tenant, diversify our portfolio, and add additional farm owners as investors by issuing OP Units, which are like common stock. The company has another large farm that is scheduled to close in January if all of the due diligence comes out positively. We believe that 2017 will be the best year in our company's history, and we plan on increasing our dividend if earnings continue to increase."
Bill Hughes, Gladstone Land's Midwest Managing Director, said that the tenant has farmed in Southeast Colorado for decades, calling it one of the top-tiered operators in the area.
"This farm acquisition is a great example of how the company can add profitable assets to the portfolio. Adding this purchase to our earlier acquisition in Baca County strengthens our commitment to a new region and a new crop specialty,” Hughes said. “A single tract of land this size affords our operator great economies of scale by being much more efficient with his use of manpower and equipment."
Gladstone has invested in properties spanning a wide range of agriculture, including almonds, strawberries, pistachios, and more. Keep checking in with AndNowUKnow as we follow the company’s continued growth within the agricultural industry through 2017 and beyond.
