Transaction to Generate an Approximate $50
Million Gain Over Net Book Value
Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”)
today announced that it is selling a portfolio of 46 farms,
comprising 41,554 acres of farmland (the “Portfolio”), for $289
million in a single transaction (“the “Transaction”) with Farmland
Reserve, Inc. The all-cash deal has been finalized by both parties
and is scheduled to close on October 16, 2024, once all conditions
to closing are satisfied.
The Portfolio includes farms across several regions and states,
including Arkansas, Florida, Louisiana, Mississippi, Nebraska,
Oklahoma, and the Carolinas. The Transaction does not include any
of the Company’s Illinois farmland, which is among the most
valuable land it owns. FPI’s total gain on sale will be
approximately $50 million, or approximately 21 percent over the
aggregate net book value of the farms comprising the Portfolio. In
2023, FPI also sold approximately $200 million of assets at a gain
in excess of 20 percent.
Luca Fabbri, FPI’s President and CEO said of the sale: “Farmland
is a ‘total return’ investment, with asset appreciation typically
accounting for a majority of the overall return on invested
capital. We have consistently advised shareholders that our company
is undervalued due to lack of recognition by the market of the
appreciation in our asset base. As we did last year, we have once
again proven our total return thesis and highlighted the unrealized
intrinsic value in our stock by delivering a sizable gain on a
representative segment of our overall portfolio. We intend to
deploy the resulting capital to reduce debt by approximately $140
million, to buy back stock, to pursue acquisitions, and for other
corporate purposes. Moreover, as we did last year, we expect to be
in a position to make a significant special distribution to
shareholders at year-end.”
Fabbri explained that the Company was excited to work with
Farmland Reserve on this Transaction.
“We are pleased to transition our long-standing tenant
relationships to a high-quality institutional investor that values
relationships as we do,” he said. “Farmland Reserve is highly
respected in the farmland community as a best-in-class owner that
manages farms expertly and deals honestly and ethically with its
farmer tenants. We strongly believe that our farmer tenants will
have an excellent partner moving forward.”
“We are grateful for the opportunity to work with Farmland
Partners to acquire this unique portfolio of high-quality
farmland,” said Doug Rose, CEO of Farmland Reserve. “We’re also
gratified they saw us as the right buyer for these properties and
the farmer tenant relationships that come with them. As an investor
with a long-term vision, we look forward to leasing these
productive farms to local farmers for many years to come.”
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.
Assuming that the pending Transaction closes, the Company is
expected to own and/or manage more than 140,000 acres of farmland
in 15 states, including Arkansas, California, Colorado, Illinois,
Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri,
Nebraska, North Carolina, South Carolina, and Texas. In addition,
the Company owns land and buildings for four agriculture equipment
dealerships in Ohio leased to Ag Pro under the John Deere brand.
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.
About Farmland Reserve, Inc.
Farmland Reserve, https://farmlandreserve.org, is an integrated
investment auxiliary of The Church of Jesus Christ of Latter-day
Saints. Farmland Reserve’s earnings support the mission of the
Church and its religious, humanitarian, educational, and charitable
good works.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws, including, without
limitation, statements with respect to our outlook and the outlook
for the farm economy generally, proposed and pending acquisitions
and dispositions, 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: the possibility that the
Transaction will not close due to the failure to satisfy one or
more closing conditions or for other reasons; the amount and timing
of receipt, and the benefits to be realized in connection with the
intended use, of the expected proceeds from the Transaction; market
factors and other considerations that could result in the Company
deciding not to declare and pay a special dividend or to declare
and pay a special dividend that is less than shareholders
anticipate; the ongoing war in Ukraine and the ongoing conflict in
the Middle East and their impacts on the world agriculture market,
world food supply, the farm economy generally, and our tenants’
businesses; changes in trade policies in the United States and
other countries that import agricultural products from the United
States; high inflation and elevated interest rates; the onset of an
economic recession in the United States and other countries that
impact the farm economy; extreme weather events, such as droughts,
tornadoes, hurricanes or floods; the impact of future public health
crises on our business and on the economy and capital markets
generally; 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 outcomes of ongoing litigation; 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, 2023, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241002913968/en/
Phillip Hayes phayes@farmlandpartners.com
Grafico Azioni Farmland Partners (NYSE:FPI)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Farmland Partners (NYSE:FPI)
Storico
Da Nov 2023 a Nov 2024
