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Gladstone Land Buys Northern California Olive Orchard

Gladstone Land Corporation (NASDAQ: LAND) has purchased 2,285 acres of farmland in Tehama County, California.

Gladstone Land Corporation (Nasdaq: LAND), a publicly traded real estate investment trust and sponsor of non-traded preferred stock offerings, has purchased 2,285 acres of farmland in Tehama County, California, for $37.8 million from Boston-based Solum Partners.

In connection with the acquisition, Gladstone Land also entered into a 15-year, triple-net lease agreement with California Olive Ranch Inc, reportedly the largest miller of olives for extra virgin olive oil in the U.S, the company said.

“We value our relationship with California Olive Ranch and are pleased with the opportunity to increase the amount of land we lease to them,” said David Gladstone, president and chief executive officer. “We have been evaluating opportunities to buy land in Northern California, and we believe this orchard is a great addition to our portfolio, as we like the diversification that olives provide. We continue to evaluate additional farms to acquire as we work towards another successful year.”

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.

In April 2020, Gladstone Land launched its $500 million, 6.00% Series C Cumulative Redeemable Preferred Stock offering, with shares priced at $25.00 each. The REIT’s Series B preferred stock listed on Nasdaq under the ticker “LANDO” in October 2020 after raising $150 million between May 2018 through March 2020.

Gladstone Land currently owns 141 farms, comprised of approximately 104,000 acres in 13 different states, valued at approximately $1.2 billion. In addition to farmland, the company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers.

Gladstone Land pays monthly distributions to its stockholders and has paid 98 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The company has increased its common distributions 21 times over the prior 25 quarters, and the current per-share distribution on its common stock is $0.04495 per month or $0.5394 per year.

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