Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) on Friday purchased 369 acres of Illinois farmland for $3 million.
The corn and soybean farm in Rock Island County includes 346 tillable acres, and its three-year, cash-rent lease is expected to yield a 4 percent annual return in addition to asset appreciation.
“Tenants are some of our best sources for acquisition leads, and this deal is a prime example of how effective that referral base can be,” Paul Pittman, FPI’s Chairman and CEO, said. “We have a long-standing relationship with the tenant who first alerted us to this farm. He will be renting this property and has proven himself to be a top-notch producer who cares for the land.”
Sam Woodrow, a farm manager for FPI who oversaw the transaction, said the farm was attractive to the Company because of its location and record of productivity.
“We have a significant presence in the area and own four other farms nearby. Together, these properties represent a large collection of fertile Mississippi River bottom farmland,” he explained. “The strong lease terms we negotiated reflect that presence and the local relationships we’ve built.”
The Company has now amassed a nearly contiguous block of land in the area totaling approximately 5,620 acres, which is farmed by a single tenant.
FPI is the nation’s largest publicly traded farmland REIT by U.S. acreage.
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns and/or manages approximately 186,400 acres in 19 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and more than 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.
This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements with respect to expected yields on acquired farmland, our outlook, proposed and pending acquisitions and dispositions, the potential impact of trade disputes and recent extreme weather events on the Company's results, financing activities, crop yields and prices and anticipated rental rates. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, the Company's ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in the Company's industry, interest rates or the general economy, adverse developments related to crop yields or crop prices, the degree and nature of the Company's competition, the timing, price or amount of repurchases, if any, under the Company's share repurchase program, the ability to consummate acquisitions or dispositions under contract and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, and the Company's other filings with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.