Gladstone Land Corporation (Nasdaq: LAND), a publicly traded real estate investment trust and sponsor of non-traded preferred stock offerings, has purchased 1,204 gross acres of farmland, including 975 farmable acres, located north of Fort Myers, Florida, for approximately $7.4 million.
In connection with the acquisition, Gladstone Land entered into a five-year, triple-net lease agreement with the seller and current tenant. The property is farmed primarily for sod, melons, and cattle.
“We are very pleased to add this versatile property to our portfolio,” said Bill Frisbie, executive vice president of Gladstone Land. “Demand for farmable acreage in Florida continues to increase, and we are excited to partner with a very strong tenant who will manage the property well.”
In related news, the company recently purchased 2,635 acres of farmland, including 1,776 planted acres of pistachios, located near Lost Hills, California, for $88 million.
Founded in 1997, Gladstone Land invests in farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The company currently owns 164 farms, comprised of approximately 113,000 acres in 15 different states and 45,000 acre-feet of banked water in California, valued at approximately $1.5 billion.
Gladstone Land pays monthly distributions to its stockholders and has reportedly paid 106 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The company has increased its common distributions 24 times over the prior 27 quarters, and the current per-share distribution on its common stock is $0.0452 per month, or $0.5424 per year.