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.
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.
Hi kaptain–in particular I like the 2021 redemption.
I agree Tim. That’s pretty meaty yield for a security that matures in three years.
I currently own a big slug myself of LANDP. Oversized for my basic position. Plan to hold these at this point.
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.
Potato chip land… hoping for a dip… would that be onion dip? 🙂 (Who says there’s no humor in investing?)