November 2, 2018

Real Estate Investment Trust (REIT) Gladstone Land has announced a significant deal that both adds to its permanent crop holdings, and diversifies its portfolio into a new crop.  

The company’s latest acquisition is a 951-acre farm in Madera County, California, that includes 715 acres of mature fig orchards, and 224 acres of mature pistachio orchards for $23 million. As part of the deal, Gladstone has also entered into an eight-year, triple-net lease with The Specialty Crop Company, Inc., the largest grower of fresh and dried figs in the world.

“This acquisition allows us to enter into a new crop type and further diversify our portfolio,” said David Gladstone, president and CEO of Gladstone Land. “Both fig and pistachio trees can potentially remain in peak production for hundreds of years, and most of the crop is consumed domestically within the United States.”

Permanent Additions

Gladstone Land has worked to build a well-curated and diversified portfolio of permanent crop operations over the past year or so in particular.

Little more than a month ago, the company announced the acquisition of two California farms totaling 194 acres of cherry orchards for approximately $6.9 million.

“Cherries are one of the many healthy foods that are produced on our farms, and these two farms produce some of the types of cherries that you typically see in grocery stores in the early spring. As many people know, our strategy is to own farms that produce healthy foods that are found in the produce and nut sections of your grocery stores,” noted Gladstone.

In March of this year, the company announced the acquisition of a 176-acre blueberry farm in Van Buren County, Michigan, for a total consideration of $2.1 million.

At the point of purchase, the operation consisted of 100 fully irrigated acres of planted blueberries and included multiple water sources. True to form, under the terms of the deal, Gladstone Land entered into a 10-year, triple net lease with True Blue Farms, one of the U.S.’s leading blueberry growers and marketers, to manage the operation.

In December 2017, Gladstone announced the acquisition of a California organic almond orchard for $5.9 million. At the same time, the company announced that it had successfully expanded its current credit facility arranged with Metropolitan Life Insurance Company from $200 million to $275 million.

And in September of last year, the company made multiple permanent crop farming deals, acquiring White Hawk Vineyard – a 361-acre wine grape vineyard located in Santa Barbara County, California, for $5.4 million, and a 746-acre organic permanent crop farm in Walla Walla, Washington, growing apples, wine grapes, and cherries, for $9.5 million.

As consumption trends continue to shift toward healthy eating and wellness, Gladstone’s latest acquisition strengthens its standing in the production of fresh fruits and nuts, and expands its reach into fig production.

“Pistachios have been a focus of ours for a while, and we felt this was a great opportunity to add another specialty crop to the mix with figs,” said Gladstone. “In this era of healthy eating and living, the demand for figs has been increasing, and the crop profile fits with our vision of owning land growing fresh produce and nuts. We are equally excited about adding this new tenant, a locally-based company with a great reputation in the area, and we look forward to what we hope are many rewarding years partnering with them.”

~ Lynda Kiernan