Gladstone Land Corporation (NASDAQ: LAND) has announced a preferred stock repurchase authorization program. The company's board of directors has approved a share repurchase program for up to $20,000,000 of the company’s 6.00% Series B Cumulative Redeemable Preferred Stock (NASDAQ: LANDO) and up to $35,000,000 of the company’s 6.00% Series C Cumulative Redeemable Preferred Stock (NASDAQ: LANDP).
The repurchases are intended to be carried out through open market transactions on U.S. exchanges or in privately negotiated transactions, in accordance with applicable securities laws. The authorization for the preferred stock repurchase program is set to expire on May 17, 2025.
David Gladstone, President of the company, stated that the share repurchase authorization is part of a capital allocation strategy believed to be in the best interest of the shareholders and the business. He emphasized that the current market conditions provide an attractive buying opportunity for the preferred stock, and using capital to repurchase the preferred shares at appropriate prices represents a favorable strategic use of capital.
Gladstone Land Corporation, established in 1997, is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties in major agricultural markets in the U.S. The company currently owns 168 farms, comprising approximately 112,000 acres in 15 different states, and over 49,000 acre-feet of water assets in California, valued at a total of approximately $1.5 billion.
Gladstone Land’s farms are predominantly located in regions where its tenants grow fresh produce annual row crops, such as berries and vegetables, as well as permanent crops like almonds, apples, cherries, and more. Approximately 30% of the company’s fresh produce acreage is either organic or in transition to become organic, and over 20% of its permanent crop acreage falls into this category.
The company pays monthly distributions to its stockholders and has paid 135 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. Additionally, the company has increased its common distributions 34 times over the prior 37 quarters, and the current per-share distribution on its common stock is $0.0466 per month, or $0.5592 per year.
For more detailed information about each of the company’s farms, interested parties can visit www.gladstoneland.com.
This press release does not contain any financial metrics comparing the current period to the prior period. The market has reacted to these announcements by moving the company's shares -0.1% to a price of $13.43. For more information, read the company's full 8-K submission here.
