>>> Gladstone Land Acquires Nut Orchard and Option to Purchase Stored Water in California
October 12, 2021
MCLEAN, VA / ACCESSWIRE / October 12, 2021 / Gladstone Land Corporation (NASDAQ:LAND) ("Gladstone Land") announced that it has acquired 1,284 gross acres of farmland, including over 1,200 planted acres of pistachios and almonds (a portion of which is organic), located in Kern County, California, and 19,670 acre-feet of stored water (equal to approximately 6.4 billion gallons) located within the Semitropic Water Storage District water bank for a total of approximately $43.0 million. In connection with the acquisition, Gladstone Land entered into a 10-year, triple-net lease agreement for the farmland. This is the third and final closing of a previously announced three-part acquisition that will result in total consideration of approximately $84.2 million.
"We are happy to announce the closing of the third and final phase of this transaction in Kern County," said Bill Reiman, Executive Vice President of Gladstone Land. "We are looking forward to a successful future with this property and new tenant. From the day we closed the first phase of this deal, we realized benefits to our overall business, and we are excited about where this will lead us in the future."
"We are pleased to be expanding our relationship with a very fine tenant who has a long history of farming in the area," said David Gladstone, President and CEO of Gladstone Land. "All of our farms continue to have adequate water. We believe the additional water we're buying in this transaction will help the production on this farm continue at good levels for many years, while also providing additional security to other farms in the area if there is ever a need for additional water."
About Gladstone Land Corporation:
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 159 farms, comprised of over 108,000 acres in 14 different states and 45,000 acre-feet of banked water in California, valued at approximately $1.4 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 10 to 20-plus years and harvested annually. The company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 104 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The company has increased its common distributions 23 times over the prior 27 quarters, and the current per-share distribution on its common stock is $0.0451 per month, or $0.5412 per year. Additional information, including detailed information about each of the company's farms, can be found at www.GladstoneLand.com.
Owners or brokers who have farmland for sale in the U.S. should contact:
Western U.S. - Bill Reiman at (805) 263-4778 or email@example.com, or Tony Marci at (831) 225-0883 or firstname.lastname@example.org
Mid-Atlantic U.S. - Joey Van Wingerden at (703) 287-5914 or email@example.com
Southeastern U.S. - Bill Frisbie at (703) 287-5839 or firstname.lastname@example.org
Lenders who are interested in providing Gladstone Land with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or Jay.Beckhorn@GladstoneCompanies.com.
For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.GladstoneCompanies.com.
>>> Zillow Pauses Home Purchases as Snags Hit Tech-Powered Flipping
By Patrick Clark
October 17, 2021
Online listing giant bought 3,800 houses in second quarter
Email says iBuyer operation has ‘hit its capacity’ for 2021
Zillow is best known for publishing real estate listings online and calculating estimated home values.
Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.
Zillow, which acquired more than 3,800 homes in the second quarter, will stop pursuing new home purchases as it works through a backlog of properties already in its pipeline.
“We are beyond operational capacity in our Zillow Offers business and are not taking on additional contracts to purchase homes at this time,” a spokesperson for Zillow said in an email. “We continue to process the purchase of homes from sellers who are already under contract, as quickly as possible.”
Zillow is best known for publishing real estate listings online and calculating estimated home values – called Zestimates – that let users keep track of how much their home is worth. The popularity of the company’s apps and websites fuels profits in Zillow’s online marketing business.
Why Zillow Went From Online Real Estate Ads to Flipping Homes
But more recently, it has been buying and selling thousands of U.S. homes. In 2018, the company launched Zillow Offers, joining a small group of tech-enabled home-flippers known as iBuyers. In the new business, Zillow invites homeowners to request an offer on their house and uses algorithms to generate a price. If an owner accepts, Zillow buys the property, makes light repairs and puts it back on the market.
With the pandemic setting off a housing frenzy marked by cash bids and fast closings, Zillow’s pitch of speed and convenience has started to resonate with consumers who want to sell their homes quickly as they try to buy a new property.
The iBuying process is powered by algorithms and large pools of capital, but it’s also reliant on humans. Before Zillow signs a contract to buy a house, it sends an inspector to make sure the property doesn’t need costly repairs. After it buys a property, contractors replace carpets and repaint interiors.
Finding workers for those tasks has been challenging during a pandemic that has stretched labor across industries. Staffing shortages have been exacerbated by Zillow’s willingness to let customers set a closing date months into the future, meaning it could agree to buy a house in August and begin renovating it in November.
“Given unexpected high demand, Zillow Offers has hit its capacity for buying homes for the remainder of the year,” an employee who works in the company’s home-buying operation in two states wrote in an email to a business partner that was viewed by Bloomberg.
Pausing new acquisitions will allow the company to work through its backlog. It’s not the first time that the company has halted purchases. Zillow stopped buying homes in the early days of the pandemic, as did its main competitor, Opendoor Technologies Inc. While the companies ultimately benefited from the housing boom that started when early economic lockdowns lifted, it took Zillow several months to resume purchasing homes at its pre-pandemic pace.
In recent months, Zillow has fended off online controversy and laid the groundwork to accelerate purchases. The company borrowed $450 million in an August bond offering that was the first of its kind, and priced a second $700 million offering in September.
For now, the company plans to refer potential customers to traditional real estate agents. While the pause should help Zillow work through the backlog, it may lose business to competitors, including its main rival.
“Opendoor is open for business and continues to serve its customers with a simple, certain, fast and trusted home move,” a spokesman for the company said in an email.
>>> Here’s the best new asset class in real estate: Tricon Residential CEO
by Thomas Hum
October 8, 2021
The housing market continues to be characterized by low inventories and soaring prices, with year-over-year deceleration not expected until January 2022. Within this hot real estate market, Tricon Residential (TCNGF, TCN.TO) President and CEO Gary Berman believes that the best new asset class may be single-family rental properties.
“Single-family rental — we think this is potentially the best new asset class in real estate, both for investors and consumers,” Berman told Yahoo Finance Live. “And it provides an unbelievable opportunity for consumers as well who may be struggling in the pandemic with affordability.”
Berman joined Yahoo Finance Live on Tricon Residential’s U.S. listing day to discuss the state of the housing market as well as the forward outlook for real estate investment in areas such as the Sun Belt. A Toronto-based real estate company which has also been trading publicly in Canada, Tricon Residential invests in single-family rental and multi-family rental homes, and owns about 33,000 properties across the U.S. and Canada.
The company focuses on the middle market, Berman said, and invests heavily in properties located in the Sun Belt.
“People are challenged looking for housing during the pandemic, and we provide what we think is a hotel-ready product and a maintenance-free lifestyle with affordable rent. And we think it's exactly what the market needs,” Berman said. “And it's a real win, a real victory, we think, both for the consumer or renter and obviously our investors as well.”
'Insatiable demand' for housing
The California housing market is expected to remain solid if the pandemic is kept under control, but structural challenges may still persist. Existing single-family home sales in the state are forecasted to decline 5.2 percent from 2021 to 2022, and California’s median home price is also expected to rise 5.2 percent to $834,400 next year. This follows a projected 20.3 percent increase to $793,100 in 2021.
According to Berman, in order to satisfy the “insatiable demand” currently seen in the housing market, Tricon Residential is going to focus on doubling its single-family rental holdings.
“Right now, we own about 25,000 single family homes throughout the Sun Belt. We want to double that to 50,000 homes over the next three years,” he said. “And really, at the end of the day, there's so much demand for what we're doing. It's a high-class problem.”
With eviction moratoriums formally ending in states around the country such as California, Berman said that Tricon Residential remains cognizant of the challenges that its customer base has been and continues to experience as the economic ramifications of the pandemic persist.
“A priority at the company [is] what we call self-governed or limited renewal increases,” Berman said. “So our renewal increases during the pandemic have been anywhere from 0 percent to maybe 5 percent in an environment where we could probably be passing on renewal increases of 10 percent to 12 percent.”
In the long run, he said, striving for low turnover benefits both the company’s tenants as well as its investors.
“We're really trying to put ourselves in the shoes of our residents and really drive the best low turnover model we can,” Berman said. “We don't want to force our residents out of their homes. We want them to stay with us and really be long-term renters. And we think in the long-term, that's the best thing for investors as well.”
Gladstone Land - >>> 3 Stocks That Cut You a Check Each Month
These stocks make it easy to earn passive income.
by Matthew DiLallo
Sep 19, 2021
Agree Realty switched to a monthly payout this year.
Gladstone Land has steadily increased its monthly dividend over the years.
Pembina Pipeline offers a big yield with longer-term growth potential.
Motley Fool Issues Rare “All In” Buy Alert
Dividend stocks are a great way to start earning passive income. However, one minor inconvenience of most dividend stocks is that they only cut checks quarterly. Because of that, the dividend income can be somewhat lumpy.
One solution to this issue is to buy monthly dividend stocks. Three excellent monthly payers worth considering are Agree Realty (NYSE:ADC), Gladstone Land (NASDAQ:LAND), and Pembina Pipeline (NYSE:PBA).
Collect rental income without any work
Agree Realty is a real estate investment trust (REIT) that owns a portfolio of free-standing retail properties. While retailers face headwinds from e-commerce, Agree Realty focuses on very specific tenants, enabling it to generate steady rental income.
First, it focuses on leasing space to essential retailers less likely to experience disruption from e-commerce. Its top tenants include grocery stores, home improvement stores, tire and auto service centers, convenience stores, dollar stores, and pharmacies. Further, it primarily focuses on retailers with investment-grade credit ratings (68% of its rental income comes from IG-rated retailers), which suggests they have the strength to meet their financial obligations during an economic downturn. Finally, Agree Realty utilizes triple-net leases, where the tenant bears responsibility for real estate taxes, building insurance, and maintenance.
Meanwhile, the REIT complements its solid portfolio with a strong financial profile, including an investment-grade credit rating and a conservative dividend payout ratio for a REIT. Those factors give Agree Realty the financial flexibility to expand its portfolio. That steady growth has enabled the REIT to consistently increase its dividend, which it started paying monthly earlier this year. Agree Realty has grown its payout at a 5% compound annualized rate over the last 10 years and should be able to keep increasing it in the future as it acquires more cash-flowing free-standing retail properties. At a 3.6% dividend yield, Agree Realty is an excellent income stock.
A steadily growing dividend
Gladstone Land is also a REIT. It specializes in owning farmland and farm-related facilities that it triple-net leases to farmers. The company primarily buys farms used to grow healthy foods like fruits, vegetables, and nuts. These crops tend to generate steadier income for farmers than commoditized products like corn, soybeans, and wheat.
Gladstone has been steadily growing its farmland portfolio by acquiring new properties. It purchased 13 farms and more than 20,000 acre-feet of banked water for $79.7 million during the second quarter. Those farms should generate steadily growing rental income due to annual rent escalations, CPI adjustments, or participation rents (a share of the crops' profits). This year, the company has started acquiring water rights to reduce the draught risk for some of its farms. That should help further stabilize its rental income.
Gladstone's growing farm portfolio has enabled it to steadily increase its dividend. The REIT has boosted its payout in 23 of the last 26 quarters, expanding it by 50.3% overall. The company aims to continue increasing its dividend at a rate that outpaces inflation, driven by steadily rising rents and additional farm acquisitions. At a 2.4% dividend yield, Gladstone offers an above-average monthly income stream.
A steady flow of dividends
Pembina Pipeline is a Canadian energy infrastructure company. It operates pipelines, processing plants, storage terminals, and export facilities. The company, in a sense, operates an energy toll booth, collecting a steady stream of fees as oil and gas flow through its integrated system. That stable cash flow supports Pembina's 6.1%-yielding monthly dividend.
While climate change concerns are forcing the global economy to shift toward cleaner alternatives, this energy transition will take decades. Because of that, demand for oil and gas will continue growing in the coming years, providing Pembina with additional opportunities to expand its energy infrastructure footprint. The company has more than $1 billion of commercially secured expansion projects under construction or ready to go. In addition, it has billions of dollars of potential expansion projects further along in the pipeline.
One notable project is the Alberta Carbon Grid, a joint venture with fellow Canadian energy infrastructure company TC Energy to build a world-scale carbon dioxide transportation and sequestration system in Western Canada. Projects like that will help reduce the energy industry's carbon footprint. Meanwhile, Pembina is exploring other cleaner alternatives like wind energy, cogeneration, and hydrogen.
Future investments (organic expansions and acquisitions) should give Pembina the fuel to continue growing its dividend. While the company hasn't increased its dividend since early 2020 due to the pandemic, it had a long history of consistent dividend growth before that blip. As market conditions improve and its current slate of expansions come online, Pembina should be able to start growing its monthly payout again.
Excellent options for monthly income
Monthly dividend stocks make it easier to earn passive income that you can use to offset a regular expense. While only a small group of stocks cut checks each month, investors have some attractive options in Agree Realty, Gladstone Land, and Pembina Pipeline. All three companies offer dividend yields well above the S&P 500 and have a history of steadily increasing their payouts.
>>> Equinix (EQIX) Expands in India, Acquires 2 Data Centers
Zacks Equity Research
September 3, 2021
Boosting its presence in the India market, Equinix, Inc. EQIX completed the acquisition of India operations of GPX Global Systems, Inc. for an all-cash transaction of $161 million. With the move, the company expanded its portfolio with a fiber-connected campus in Mumbai with two data centers. It has appointed Manoj Paul as the managing director for Equinix India operation.
With the completion of the transaction, the new International Business Exchange (“IBX”) data centers form a network-dense data center campus, with more than 350 international brands and local companies.
The two acquired data centers, referred to as Equinix MB1 and MB2, offer an initial capacity of 1,350 cabinets, with an additional 500 cabinets to buildout. At the full build, the facilities will add more than 90,000 square feet of colocation space to Platform Equinix.
The acquisition seems a strategic fit as India is expected to grow, witnessing a 21% compound annual growth rate, and become a $2-trillion digital economy by 2030. With the rollout of 5G, and information and communications technology policy reforms of the government, digitalization and cloud adoption in India is expected to rise.
Equinix’s effort to bolster its presence in the country will add scale and strengthen its position in the region, while helping it benefit from the accelerations in digital infrastructure transformations.
Upon the completion of the business integration, the company plans to offer its full spectrum of interconnection and digital infrastructure services, comprising Equinix Connect, Equinix Internet Exchange, Metro Connect, Equinix Fabric and Network Edge in the new data centers, and help them connect in real-time, directly and privately to more than 10,000 companies.
Equinix enjoys a solid presence in the AsiaPacific region, operating 49 IBX data centers across 13 metros in Australia, China, Hong Kong, India, Japan, Korea and Singapore. Globally, the company remains well-poised to bank on the robust demand in the data center space with its Platform Equinix, which comprises more than 230 data centers across 65 metros and 27 countries.
Robust growth in cloud computing, the Internet of Things and big data, and a greater call for third-party IT infrastructure are spurring the demand for data-center infrastructure. Moreover, growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets is anticipated to be robust over the next five to six years.
As infrastructure providers for the rapidly-growing digital economy, data-center providers such as Equinix, Digital Realty Trust DLR, CyrusOne Inc. CONE and CoreSite Realty Corporation COR are well-placed for sustainable growth.
Shares of Equinix have gained 44.9% over the past six months, outperforming the industry's growth of 22.8%.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
>>> Innovative Industrial Properties Acquires Property in Maryland and Expands Real Estate Partnership With Harvest
August 16, 2021
SAN DIEGO, August 16, 2021--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in Hancock, Maryland, and entered into a long-term lease with a subsidiary of Harvest Health & Recreation Inc. (Harvest) (CSE: HARV, OTCQX: HRVSF).
The purchase price for the property was approximately $16.6 million (excluding transaction costs). Harvest is expected to complete additional tenant improvements for the property as a regulated cannabis cultivation and processing facility, for which IIP has agreed to provide reimbursement of up to $12.9 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property is expected to be approximately $29.5 million. Earlier this year, IIP acquired a Florida property and executed a long-term lease with Harvest, which comprises approximately 295,000 square feet and for which IIP expects its total investment to be approximately $41.7 million, assuming full reimbursement for tenant improvements.
Founded in 2011, Harvest is a leading vertically integrated U.S. multi-state operator with licensed operations in Arizona, California, Colorado, Florida, Maryland, Nevada and Pennsylvania, including 44 retail locations, 11 cultivation and processing locations and over 1,600 employees across its operations. In May 2021, Trulieve Cannabis Corp., another IIP tenant partner in Florida and Massachusetts, announced that it had entered into an agreement to acquire Harvest, subject to the satisfaction of certain conditions.
"We are excited to further expand our long-term real estate partnership with Harvest in Maryland," said Paul Smithers, President and Chief Executive Officer of IIP. "Harvest continues to execute well on its business plan, with a tremendous vertically integrated footprint across some of the strongest regulated cannabis markets in the United States. We look forward to working closely with Harvest as they further build out their production capacity in Maryland to meet the continued strong growth in demand from patients across the state, as well as potential for expansion of the current program to regulated adult-use in the nearer term."
As the pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.
Maryland implemented its medical-use cannabis program in 2017, with limited licenses to cultivate, process and dispense cannabis. Qualifying medical conditions for the program include, among others, anorexia, conditions resulting in a patient receiving hospice or palliative care, PTSD, seizures, chronic pain, severe nausea and severe or persistent muscle spasms, as well as other chronic, severe medical conditions if other treatments have been ineffective and the recommending healthcare professional believes medical cannabis can provide some relief. Similar to other states, state regulatory authorities have expanded the program over time, including allowing physician assistants to make recommendations for medical cannabis patients and expanding the forms by which medical cannabis can be consumed. According to the Maryland Medical Cannabis Commission, there were approximately $140 million in medical cannabis sales during the three months ended June 30, 2021. In addition, according to a Goucher College poll conducted in February of this year, approximately two-thirds of Maryland residents support the legalization of adult-use cannabis. Last month, Maryland House Speaker Adrienne Jones pledged that lawmakers would pass a bill to put the question of legalization of cannabis for adult use to voters as a referendum on the 2022 ballot. Including this property, IIP owns two properties in Maryland, comprising approximately 184,000 rentable square feet (including square footage under redevelopment) and representing a total investment, including commitments to fund future tenant improvements, of approximately $51.9 million.
As of August 16, 2021, IIP owned 74 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington, representing a total of approximately 6.9 million rentable square feet (including approximately 2.5 million rentable square feet under development/redevelopment), which were 100% leased with a weighted-average remaining lease term of approximately 16.6 years. As of August 16, 2021, IIP had committed approximately $1.7 billion across its portfolio, including capital invested to date (excluding transaction costs) and additional capital commitments to fund future construction and tenant improvements at IIP’s properties, but excluding an $18.5 million loan from IIP to a developer for construction of a regulated cannabis cultivation and processing facility in California.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest's mission is to improve lives through the goodness of cannabis. We hope you'll join us on our journey: https://harvesthoc.com.