August 26, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Not even ten days before writing this, Gladstone Land announced it had closed on a $42.3 million deal for farmland, blueberry plantings, and improvements situated in Kern County, California, and Yamhill County, Oregon.

Within a week’s time following this deal, the company announced another two deals with a combined value of $20 million.

On August 19 Gladstone shared that it had acquired two lemon and orange groves totaling 617 acres in South Florida for approximately $5.2 million. In connection with the deal, which marks the company’s first acquisition of groves in Florida, Gladstone entered into a 12-year leaseback agreement with the seller.

“These groves produce lemons and oranges sold into the juice and fresh markets,” said Bill Frisbie, executive vice president, Gladstone Land. “Our tenant, the seller, has been very proactive in managing the health and production of these groves, and we believe they are well-positioned for the future.”

Also commenting on the addition to the portfolio, David Gladstone, president and CEO of the company, said, “These two properties are ideal for our growing portfolio of farms producing healthy fruits and vegetables. We are continuing to target the highest quality farms with secure sources of water. However, our greatest strength is that the growers we partner with are dedicated to cultivating the best produce and preserving resources.”

Five days later, on August 24, Gladstone announced it had acquired 479 gross acres of farmland, including 460 planted acres of almonds, in Kern County, California, along with 5,000 acre-feet of stored water equal to about 1.6 billion gallons, located in the Semitropic Water Storage District water bank, for a total consideration of approximately $14.8 million.

“We are excited to announce the completion of the second phase of this acquisition,” said Bill Reiman, executive vice president, Gladstone Land. “We are looking forward to completing the final phase of this transaction and adding this asset to our portfolio. The stored water and tenant have already added value to our business, and we expect this to continue to be the case.”

This deal marks the second closing of a three-part deal acquisition. The third closing is scheduled to occur later this year, at which time the total consideration for the deal will be $84.2 million.

Again, Gladstone entered into a 10-year, triple-net lease agreement for the land.

“We are pleased to be expanding our relationship with a strong tenant who has a long history of farming in the area,” said David Gladstone. “All of our farms continue to have adequate water. We believe the additional water we’re buying in this transaction will help ensure that the production on this farm remains at high levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water.”

The closing of these two latest deals leads Gladstone’s portfolio to exceed 100,000 acres, at 107,000 acres. Total holdings include 158 farms in 14 U.S. states, including more than 250,000 acre-feet of banked water in California, valued at over $1.3 billion.

The company also holds ancillary assets such as cooling facilities, processing sites, packing facilities, and distribution centers in connection with a range of row, specialty, and permanent crop holdings.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.