Sep 12, 2017Gladstone purchases organic farm in Washington state
McLean, Virginia-based Gladstone Land Corp. has acquired a 746-acre organic farm in Walla Walla, Washington for $9.5 million. Upon acquisition, Gladstone Land assumed a lease with a remaining term of six years with a leading farming operation that currently grows apples, winegrapes and cherries on the farm.
“We are privileged to acquire our first permanent-crop farm in Washington state,” said Bill Frisbie, managing director of Gladstone Land. “We now own 72 farms across the U.S., and we seek to continue building and diversifying our high-value agricultural portfolio.”
“The Walla Walla growing region within the Columbia River Basin is one of the most diverse growing regions in the world,” said Bill Reiman, managing director of Gladstone Land. “We are fortunate to pair with a highly-regarded tenant-partner who has over three decades of operating experience.”
“This is another region that we have targeted in order to increase the overall diversification within our farmland holdings, both geographically and by crop type,” said David Gladstone, president and CEO of Gladstone Land. “We have built our farmland portfolio on the thesis that continued growing demand for fresh fruits and vegetables and nuts will make the finite supply of farms that produce these crops more valuable over time. This is another farming area that is in high demand by growers. We believe the addition of this particular farm will provide us with steady value appreciation and additional income, which should help us achieve our goal of continuing to increase our distributions to stockholders.”
Gladstone Land is a publicly-traded real estate investment trust that invests in farmland located in major agricultural markets in the U.S., which it leases to farmers, and pays monthly distributions to its stockholders.
The company reports the current fair value of its farmland on a quarterly basis; as of June 30, 2017, its estimated net asset value was $14.46 per share.
Gladstone Land currently owns 72 farms, comprised of 61,794 acres in nine different states across the U.S., valued at approximately $531 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are planted and harvested annually or more frequently; as well as permanent crops, such as almonds, blueberries, and pistachios, which are planted every 10 to 20-plus years.
The company also may acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities and distribution centers. Gladstone Land has paid 55 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013, and the current per-share distribution on its common stock is $0.044 per month, or $0.528 per year. Additional information can be found here and here
.Owners or brokers who have farmland for sale in the U.S. should contact:
- Eastern U.S. — Bill Frisbie at (703) 287-5839 or email
- Western U.S. — Bill Reiman at (805) 263-4778 or email
- Midwest U.S. — Bill Hughes at (618) 606-2887 or email