Gladstone Land Announces Expansion and Extension of its Farmer Mac Facility
June 20 2016 - 9:15AM
Gladstone Land Corporation (NASDAQ:LAND) (the “Company”), announced
today that it, through one of its wholly-owned subsidiaries, has
expanded its secured note purchase facility with Federal
Agricultural Mortgage Corporation (“Farmer Mac”), (NYSE:AGM) and
(AGM.A) from $75.0 million to $125.0 million and extended its term
by two years, to December 11, 2018. Bonds issued under this
facility are secured by mortgage loans on agricultural real estate
owned by the Company and have an effective loan-to-value ratio of
up to 60% of the underlying agricultural real estate.
“We are pleased to build on our relationship with Farmer Mac, as
they offer some of the best financing terms available,” said David
Gladstone, President and CEO of the Company. “This expansion
and extension will provide us with additional flexibility as we
continue our due diligence on the list of farms we’re looking to
buy, and we believe the attractive rates will allow us to
strengthen our margins and enable us to pass on some of the savings
to our stockholders in the form of distributions.”
About Gladstone Land
Corporation:Gladstone Land is a real
estate investment trust that pays monthly distributions to its
stockholders. The Company invests in farmland located in
major agricultural markets in the U.S. that it leases to
independent and corporate farming operations. As of March 31,
2016, the net asset value of the Company was $13.87 per share, and
the Company intends to report the current value of its farmland on
a quarterly basis. The Company currently owns 47 farms,
comprised of 23,456 acres in 7 different states across the U.S.,
valued at approximately $334 million. Its acreage is
predominantly concentrated in locations where its tenants are able
to grow fresh produce annual row crops, such as berries and
vegetables, which are planted and harvested annually or more
frequently, as well as permanent crops, such as almonds,
blueberries and pistachios, which are planted every 10 to 20-plus
years. The Company also may acquire property related to
farming, such as cooling facilities, processing buildings,
packaging facilities, and distribution centers. The Company
has paid 40 consecutive monthly cash distributions on its common
stock since its initial public offering in January 2013. The
current per-share distribution is $0.04125 per month, or $0.495 per
year. Additional information can be found at
www.GladstoneLand.com and www.GladstoneFarms.com.
Owners or brokers who have farmland for sale in the U.S. should
contact:
- Bill Frisbie at (703) 287-5839 or Bill.F@GladstoneLand.com –
Eastern U.S.
- Bill Reiman at (805) 263-4778 or Bill.R@GladstoneLand.com –
Western U.S.
- Bill Hughes at (618) 606-2887 or Bill.H@GladstoneLand.com –
Midwest U.S.
For stockholder information on Gladstone Land, call (703)
287-5893. Information on the business activities of all of
the Gladstone funds can be found at
www.GladstoneCompanies.com. For Investor Relations inquiries
related to any of the monthly dividend paying Gladstone funds,
please visit www.Gladstone.com.
Certain statements in this press release, including, but not
limited to, the Company’s ability to maintain or grow its
portfolio, increases in operating revenues, and distributions are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These
forward-looking statements inherently involve certain risks and
uncertainties, although they are based on the Company’s current
plans that are believed to be reasonable as of the date of this
press release. Factors that may cause actual results to
differ materially from these forward-looking statements include,
but are not limited to, the Company’s ability to procure financing
for investments; downturns in the current economic environment; the
performance of its tenants; the impact of competition on its
efforts to renew existing leases or re-lease real property; and
significant changes in interest rates. Additional factors
that could cause actual results to differ materially from those
stated or implied by its forward-looking statements are disclosed
under the caption "Risk Factors" of its Form 10-K for the fiscal
year ended December 31, 2015, as filed with the SEC on February 23,
2016, and its Form 10-Q for the three months ended March 31, 2016,
as filed with the SEC of even date herewith. The Company
cautions readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
For further information: Gladstone Land, 703-287-5893
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