Invest in farmland like Bill Gates with these REITs with yields of up to 4.1%

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Bill Gates, the largest private owner of farmland in the United States, with nearly 250,000 acres in his portfolio, has drawn attention to the growing appeal of farmland as an investment.

For those intrigued by farmland’s stability and long-term value, farmland real estate investment trusts (REITs) offer a practical way to gain exposure to the asset class. These REITs allow investors to benefit from the growing demand for food and agricultural products without the high upfront costs or operational complexities of buying and running a farm.

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Here are two farmland REITs you could invest in today.

Gladstone Land Corp.

Starting June 30, Gladstone Land Corp. (NASDAQ:LAND) owns and manages 168 farms containing approximately 111,836 acres in 15 states. Gladstone focuses primarily on farms that grow fresh produce annually, including most fruits and vegetables, as well as certain permanent crops, including blueberries and nuts.

Gladstone Land currently pays a monthly dividend of $0.0467 per share, which equates to an annual dividend of $0.5604 per share and gives its stock a yield of about 4.1% at the time of writing.

In addition to a high yield, Gladstone Land offers dividend growth. It raised its dividend by 0.2% in July, marking the 35th time the company has raised its dividend in the past 38 quarters. The company also notes that it has paid 137 consecutive monthly dividends since its initial public offering in January 2013.

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Partners for farmland

Starting June 30, Partners for farmland (NYSE:FPI) owned and/or managed nearly 300 farms containing approximately 180,063 acres of farmland in 17 U.S. states, making it the nation’s largest farmland REIT by acreage. It also owns land and buildings for four farm equipment dealers in Ohio that are leased to Ag-Pro under John Deere & Co. brand.

Farmland Partners currently pays a quarterly dividend of $0.06 per share, which equates to an annual dividend of $0.24 per share and gives its stock a yield of about 2.4% right now.

While its yield is much lower than Gladstone’s, it’s worth noting that Farmland Partners paid a special dividend of $0.21 per share in January due to a strong farmland market in 2023. If you were to consider this particular dividend in its total for 2024, its yield would be over 4%.

Better returns than some REITs?

The current high interest rate environment has created an incredible opportunity for income investors to earn massive returns, but not through REITs.

Arrived Homes, the investment platform backed by Jeff Bezos, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target net annual return of 7% to 9% paid investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, it has a minimum investment of only $100.

As long-term rates fall and short-term rates remain high, there is a unique opportunity to invest in fix & flip loans before yields fall. Check out Benzinga’s favorite high yield deals.

This article Invest in Farmland Like Bill Gates With These REITs That Yield Up to 4.1% originally appeared on Benzinga.com