Gladstone Land Corporation announced that it has acquired approximately $42.3 million of farmland, blueberry plantings, and improvements located in Kern County, California, and Yamhill County, Oregon. Both farms are 100% certified USDA organic. In connection with the acquisitions, Gladstone Land entered into triple-net leaseback agreements with the seller on each farm, ranging in length from 10 years to 15 years.
"Both of these organic blueberry farms utilize advanced irrigation methods, high density plantings, and shade structures to minimize inputs and protect the quality of the fruit," said Joseph Van Wingerden, Director at Gladstone Land. "Organic produce sales reportedly increased by 11% in 2020 as the demand for organics continues to grow. The innovative growing methods used by our tenant on these properties represent how the best farmers are continually striving to meet this demand with the highest quality produce while being good stewards of the land and minimizing water use."
"These two acquisitions are ideal properties for our growing portfolio of farms producing healthy produce," said David Gladstone, President and CEO of Gladstone Land. "We are continuing to target the highest quality farms with secure sources of water. But our greatest strength is that the growers we partner with are dedicated to cultivating the best produce and preserving resources. I recommend going to your local grocery store and buying as many fruits, vegetables, and nuts as you can!"
Financial results for the second quarter
The Company today also reported financial results for the second quarter ended June 30, 2021. Net loss for the quarter was approximately $531,000, compared to net income of approximately $554,000 in the prior quarter. Net loss to common stockholders during the quarter was approximately $3.5 million, or $0.12 per share, compared to approximately $2.2 million, or $0.08 per share, in the prior quarter.
AFFO was approximately $3.7 million for the current quarter, compared to approximately $4.7 million for the prior quarter, while AFFO per common share was approximately $0.13 for the current quarter, compared to $0.17 for the prior quarter. Common stock dividends declared were approximately $0.135 per share for each quarter.
The decrease in AFFO was primarily driven by $2.2 million of interest patronage received during the prior quarter related to our borrowings with Farm Credit, coupled with higher property-operating expenses incurred during the current quarter.
For further detail, please refer to the Company's Quarterly Report on Form 10-Q (the "Form 10-Q"), which is available on the Investors section of the Company's website at www.GladstoneLand.com.
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