Gladstone Land Corporation is expanding pistachio production in a big way; the company has announced that it has acquired approximately 1,000 gross acres of farmland in Coalinga, California, for US$33 million.
The farm consists of 911 planted acres of mature pistachio trees, the company says.
Along with the acquisition, Gladstone Land has also entered into an eight-year, triple-net lease with RTS Agri-Business and Canoas Creek Pistachios.
This is the first closing of a two-part acquisition; the second closing is scheduled to occur during the fourth quarter of 2019. It will be slightly larger than this one, the corporation explains.
“We are excited to be adding another large pistachio orchard in the San Joaquin Valley,” comments Bill Reiman, managing director of Gladstone Land.
“More than just adding another property to our farmland holdings, we are also adding another high-quality grower-tenant. It has been a pleasure to work with Rod Stiefvater, Paul Nugent, and their broker, Cameron Kay."
Gladstone Land is growing a "diverse portfolio"
He adds that the company aims to move forward in a sustainable way.
"This is a large holding with its own solar facilities to help reduce energy costs," he explains.
Moreover, "the farm has added value due to the water infrastructure that allows the grower to deliver surface water to the orchard.”
David Gladstone, president and CEO of Gladstone Land adds: “We continue to build our diverse portfolio of farmland focused primarily on healthy foods, such as fresh produce and nuts. And we are very encouraged by the number of large, high-quality farms we have been able to acquire recently."
As for the pistachio orchard, Gladstone says it "has just reached peak production".
He comments that is a great representation of the company's ability to partner with esteemed operators and purchase farms that will produce steady rental income.
Additionally, he says it will "allow us to continue growing the dividends we pay to our shareholders.”
This is the second large acquisition the company has made within the quarter, it says.