Gladstone Land Corporation Discusses Acquisition Strategy in Fourth Quarter and Year Ended 2021 Results; David Gladstone Comments
MCLEAN, VA - We heard many acquisition announcements from Gladstone Land Corporation in 2021, including the launch of a new venture for agricultural companies. Recently, the company further outlined its acquisition strategies in its financial results for the fourth quarter and year ended December 31, 2021.
“We ended the year on a high note with another active quarter of acquisitions and a strong turnout from our participation rents,” said David Gladstone, President and Chief Executive Officer. “We acquired $294 million of additional farms during 2021, the third straight year in which we've had over $250 million in acquisitions. And we recorded $5.2 million in participation rents during the year, which was more than twice the amount we recorded in each of the prior two years. This increase was largely due to the participation rent component on certain farms we purchased in the past few years becoming active for the first time in 2021 and was particularly aided by strong yields and pricing from our pistachio crop. We have a few more farms with participation rents scheduled to come online in 2022, but it's too early for us to know what the results will be at this time.”
On the acquisition front, Gladstone purchased 27 new farms in 2021, amounting to 11,463 acres in seven states. This also included the acquisition of 45,000 acre-feet of water. Additionally, Gladstone executed 17 new lease agreements in four states, the report stated.
Additional metrics from the report include:
- Net income for the fourth quarter was approximately $2 million compared to $1.5 million in the previous quarter
- AFFO for the quarter was approximately $6.7 million, a $1.5 million increase from the previous quarter
- Net income for 2021 was approximately $3.5 million compared to $5 million in the previous year
- AFFO for the year was approximately $20.4 million, a $6.1 million increase from the previous year
“Despite record-breaking storms that came toward the end of 2021, California remains under drought conditions,” Gladstone continued. “However, all of our farms continue to have sufficient water. We are working hard to replenish our backlog of potential farm acquisitions, and we are looking forward to another successful year in 2022.”
As Gladstone continues to implement its acquisition and leasing strategies, ANUK will be here bringing you the latest.