Gladstone Land Snaps Up Olive Orchard For $37.8M; Street Sees 11% Upside

Real estate investment trust Gladstone Land Corp. has acquired 2,285 acres of olive orchard in California for $37.8 million from Solum Partners. The company acquires farms and related properties and leases them to third-party farmers.

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Gladstone Land (LAND) Managing Director, Tony Marci, said, “We are very pleased to build upon our relationship with California Olive ranch. This farm near Corning, California, is a very nice olive orchard, and we are excited to increase our farmland ownership within the Sacramento Valley.”

David Gladstone, President and CEO of Gladstone Land, said, “We have been evaluating opportunities to buy land in Northern California, and we believe this orchard is a great addition to our portfolio, as we like the diversification that olives provide. We continue to evaluate additional farms to acquire as we work towards another successful year.” (See Gladstone Land stock analysis on TipRanks)

Along with the acquisition, Gladstone Land also entered into a 15-year lease agreement with California Olive Ranch. The latter is the largest miller of olives for extra virgin olive oil in the U.S.

Currently, Gladstone owns 141 farms made up of about 104,000 acres, with this land valued at about $1.2 billion.

Last month, B. Riley Financial analyst Craig Kucera reiterated a Buy rating on the stock and raised the price target to $21 (12.4% upside potential) from $17.50. Kucera sees 2021 as “another significant year of external growth” for the company.

Turning to the rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $20.75 (11% upside potential), based on 2 Buys and 1 Hold. Shares have gained about 59.9% over the past year.