Sep 4, 2019
Gladstone Land acquires vineyard in Napa, California

Gladstone Land Corp. has acquired a 366-acre vineyard in Napa, California, for $32 million. In connection with the acquisition, Gladstone Land entered into a leaseback agreement with the seller for a 10-year, triple-net lease.

“This is an exciting acquisition for us,” said Bill Reiman, managing director of Gladstone Land. “We are entering a new region and beginning a new tenant relationship with one of the leading wine companies. Having a presence in the premium wine grape growing region of Napa really helps to solidify our position within the California wine industry. We look forward to many more opportunities here and throughout other wine grape growing areas.”

“It’s rare that opportunities for a beautiful vineyard like this one come along on attractive terms, but our team did a great job of finding this one and negotiating its purchase,” said David Gladstone, president and CEO of Gladstone Land. “We now have an excellent vineyard with an outstanding tenant in Napa Valley, California. This acquisition expands our vineyard holdings and adds another very strong, long-term operator to our tenant base. Entering Napa Valley also adds a new growing region to our list of farm-growing areas, further diversifying our farmland holdings. Diversification is a key element in our desire to reduce risk and build a farmland REIT that can pay steady dividends to stockholders.”

It was Gladstone’s second major purchase announcement in less than a week. The company also acquired approximately 413 gross acres of farmland within the Oxnard Plain of California. At closing, the company entered into lease agreements with two different, unrelated third-party tenants to operate the property. The seller will lease back most of the farm to continue their sod business, while the remainder of the farm will be leased to a local berry grower to grow a variety of berry crops.

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that owns farmland and farm-related properties located in major agricultural markets across the U.S. and leases its properties to unrelated third-party farmers.  The company reports the fair value of its farms on a quarterly basis.  The company currently owns 95 farms, comprised of approximately 82,000 acres in 10 different states, valued at approximately $821 million.  T

The farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The company also owns farms growing permanent crops, such as almonds, apples, figs, olives, pistachios, and other orchards, as well as groves of blueberries and vineyards, which are generally planted every 10 to 20-plus years and harvested annually.

The company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. The company pays monthly distributions to its stockholders and has paid 79 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution on its common stock is $0.04455 per month, or $0.5346 per year. Additional information, including detailed information about each of the Company’s farms, can be found at www.GladstoneFarms.com.





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