Farmland Partners Purchases 439-Acre Nebraska Farm
March 25 2022 - 7:10AM
Business Wire
Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”)
yesterday purchased a 439-acre farm located in Colfax County,
Nebraska, for approximately $2.6 million.
The corn and soybean farm includes 425 tillable acres, 350 of
which are pivot irrigated. It is being rented back to the seller on
a one-year lease with a gross capitalization rate of 5.2
percent.
“Our Company is in growth mode and this purchase is exactly what
we’re seeking for our investors,” said FPI Chairman and CEO Paul
Pittman. “It was acquired at a fair price in an appreciating
market, it has a high-yielding lease, and it further diversifies
our holdings in Nebraska and across the country.”
FPI also expects the value of the newly acquired farmland to
grow over the long-term. U.S. agriculture land has appreciated at a
compound annual growth rate of approximately 5.7 percent since
1970, based on U.S. Department of Agriculture data.
The deal comes on the heels of two farmland purchases in
Illinois within the past week, and Pittman noted that the Company
is actively working on additional acquisitions.
FPI is the nation’s largest publicly traded farmland REIT by
U.S. acreage. It now owns 30 farms in Nebraska across 8
counties.
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 187,000 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.
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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220325005025/en/
Phillip Hayes, phayes@farmlandpartners.com
Farmland Partners (NYSE:FPI)
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