Boston, MA 09/10/2014 (wallstreetpr) – The small investors have started contemplating whether it is the right time to buy REITs like Gladstone Capital Corporation (NASDAQ:GLAD) and others. Investors consider the investment in forest tracts and farmlands as “gold with a coupon.” It is one of the effective hedging ways to safeguard against inflation. As inflation rises, land prices start rising in tandem, and, therefore, attracts small investors towards REITs. It is easiest and convenient way to get access to forest tracts and farmland. Also, it becomes a steady source of income.
Investment in publicly traded REITs
Small investors get access to forest tracts and farmland through publicly traded REITs. Investors have some of the new relatively REIT for investment in farms. One of the most popular names is Gladstone Capital Corporation (NASDAQ:GLAD) Land. It raised $57 million in its IPO last year in the month of January and now has got 6,833 acres spread on 28 farms in Florida, Oregon, Arizona, Michigan and California. It has got dividend yield of around 5.82%.
The second new REIT is Farmland Partners Inc (NYSEMKT:FPI) which raise $53 million from its IPO this year and has got 23,630 acres on 41 farms in Colorado, Nebraska and Illinois. Farmland also has got three grain-storage facilities, and its dividend yield is around 0.90%.
The attraction
Gladstone Capital Corporation (NASDAQ:GLAD) Land is operating in its first full fiscal year as a public company. It is picking up steam as it started slow in year 2014 due to unavailability of the new line of credit in place. As a public company, it is still expensive but will catch on as it expands in the coming time. Recently, it bought seven new farms for a deal valued at $23.8 million. The backlog of farms is getting strong and further it expects to close some more deals in the near future. Investors can consider investing in REITs as it is better to go for an asset appreciation investment rather than waiting for an income investment.
