Enters into Lease Agreements for an Aggregate 1,000 Acres
SANTA PAULA, Calif.--(BUSINESS WIRE)--
On January 6, 2012, Limoneira Company (NASDAQ: LMNR), a leading
agribusiness with prime agricultural land and operations, real estate
and water rights in California, entered into a series of leases for the
Sheldon Ranches, which consist of approximately 1,000 acres of
productive agriculture property in the San Joaquin Valley of California.
The orchards include approximately 800 acres of citrus and 200 acres of
other crops.
The initial lease terms begin January 1, 2012 and are for ten years with
options to extend each term for four consecutive five year terms. The
leases include provisions for the potential purchase of the property by
Limoneira in the future. Terms of the leases include base rent and
participation in operating profits of the leased property.
"We are extremely pleased to become affiliated with the Sheldon
Ranches," commented Harold Edwards, President and Chief Executive
Officer of Limoneira. "The Sheldon Ranches have grown and successfully
operated for generations and Limoneira's involvement provides an
opportunity for the Sheldon Family operations to successfully continue
for generations to come. Integrating the Sheldon Ranches into
Limoneira's portfolio of high quality agricultural properties represents
another significant growth milestone for our 119 year old company. We
are very excited to welcome the Sheldon Family to Limoneira."
Due to the timing of the growing and harvesting seasons, and because the
farming costs associated with the leased property were incurred by the
lessor prior to lease commencement, Limoneira will not share in the
citrus crop revenue in its fiscal year 2012 ending October 31, 2012.
Fiscal year 2013 and forward operating results on the leased property
are expected to be similar on a per acre basis as existing citrus
orchard operating results.
"These leases represent an important component of our global growth
strategy to acquire productive agriculture acreage and leverage our
expertise and existing infrastructure to drive our top line growth and
increase our profitability," stated Alex Teague, Senior Vice President
of Limoneira. "Quality citrus acreage such as the Sheldon properties
will be an important addition to our portfolio and will greatly enhance
our continued expansion strategy."
About Limoneira Company
Limoneira Company, a 119-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra), is a dedicated sustainability company with approximately 6,850
acres of rich agricultural lands, real estate properties and water
rights in California. The Company is a leading producer of lemons,
avocados, oranges, and other specialty crops that are enjoyed throughout
the world. For more about Limoneira Company, visit www.limoneira.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on Limoneira's current expectations
about future events and can be identified by terms such as "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking
statements are reasonable but cannot guarantee future results, level of
activity, performance or achievements. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Therefore, Limoneira cautions you against relying on any of
these forward-looking statements. Factors which may cause future
outcomes to differ materially from those foreseen in forward-looking
statements include, but are not limited to: changes in laws,
regulations, rules, quotas, tariffs and import laws; weather conditions
that affect production, transportation, storage, import and export of
fresh product; increased pressure from disease, insects and other pests;
disruption of water supplies or changes in water allocations; pricing
and supply of raw materials and products; market responses to industry
volume pressures; pricing and supply of energy; changes in interest and
currency exchange rates; availability of financing for land development
activities; political changes and economic crises; international
conflict; acts of terrorism; labor disruptions, strikes or work
stoppages; loss of important intellectual property rights; inability to
pay debt obligations; inability to engage in certain transactions due to
restrictive covenants in debt instruments; government restrictions on
land use; increased costs from becoming a public company and market and
pricing risks due to concentrated ownership of stock. Other risks and
uncertainties include those that are described in Limoneira's SEC
filings, which are available on the SEC's website at http://www.sec.gov.
Limoneira undertakes no obligation to subsequently update or revise the
forward-looking statements made in this press release, except as
required by law.
ICR
John Mills
Senior Managing Director
310-954-1105
Source: Limoneira Company
News Provided by Acquire Media
