Gladstone Land Acquires California Pistachio and Almond Farms for $13.6 Million
MCLEAN, VA - Gladstone Land Corporation is on the move again, this time announcing an acquisition of four contiguous farms in the Fresno County area of California.
Now, the company has purchased a total of 847 gross acres, approximately 327 acres of pistachio trees and 318 acres of almond trees, for approximately $13.6 million (about $16,056.67 per acre.)
"This acquisition allows us to continue to grow our portfolio of farmland focused on growing healthy products, such as fresh produce and nuts," said David Gladstone, President and CEO, in a press release. "The lease on this property should allow us to generate strong returns, thereby helping us to achieve our goal of regularly increasing the distributions we pay to our shareholders. We have increased the distributions rate on our common stock in each of the past four quarters."
The farms were all planted between 2002 and 2009. Gladstone said that the seller is a leading almond and pistachio grower, harvester, and processor but did not name them or the farms in the release. The company did say that upon acquisition, it entered into a leaseback agreement with the seller for a 10-year, triple-net lease that includes one 5-year extension option.
"This acquisition is another fine example of the productive relationships we have developed with our tenants," said Bill Reiman, Managing Director for the Western United States. "The sale-leaseback transaction is a hallmark of our investment thesis, and we hope to continue providing this service to current and new tenants all over the Western United States."
The lease consists of a fixed cash rent component plus a revenue-sharing component based on the crops harvested on the farms, according to the company.
With this being its third land purchase in two months, what region and category will Gladstone look to next? Keep checking in with AndNowUKnow.