REIT Gladstone Land Acquires Texas Potato Farm

Agricultural REIT Gladstone Land (NASDAQ:LAND) has acquired a farm in Texas which is primarily used for growing potato chip potatoes.

LAND has paid $8.5 million for 3,667 acres.  The farm has 2,200 acres under irrigation with 12 wells on site.

The farm is currently leased to CSS Farms who is a national agribusiness specializing in potatoes.  Terms of the lease have not been released although we may see that in the coming days.

Gladstone Land has a 6.375% term preferred stock (NASDAQ:LANDP) in which we own a full position in at this time.  It is a monthly payer and has a mandatory redemption in 9/2021–shares became optionally redeemable in September, 2018.  The share price has slid some in the last month and closed today at $25.26 which is down 2-3% in the last month or so and  we are considering a small additional purchase of shares.

The press release on the new farm purchase can be seen here. 


6 thoughts on “REIT Gladstone Land Acquires Texas Potato Farm”

  1. Potato Chip land will always be in demand (from me!) I watch the common hoping for a dip as I would like to buy a small position.. so far no go and shares have been quite stable in the volatile market.

    1. Potato chip land… hoping for a dip… would that be onion dip? 🙂 (Who says there’s no humor in investing?)

  2. Based on the purchase price, this is just a little over $2,300 per acre, which sounds like a reasonable price. I’m not a holder of LANDP yet, but overall I think they are a well run company and the term preferred certainly looks attractive.

      1. I agree Tim. That’s pretty meaty yield for a security that matures in three years.

        1. I currently own a big slug myself of LANDP. Oversized for my basic position. Plan to hold these at this point.

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