Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”)
today announced it received notice that a renewable energy tenant
plans to begin construction of a new solar power project in Clark
County, Illinois, by the end of the month.
The development, which extends across six FPI properties
spanning 1,542 acres, will generate increased rental income for the
Company and expand its growing renewable energy portfolio.
The tenant will pay rents that are nearly 50% higher than
current farm rents once construction is completed and will make
payments above that higher level during the expected 12-month
construction period.
“While working with farmers and supporting their efforts to
responsibly feed the world remains our primary mission, we also
recognize that investing in renewable energy benefits the
environment and provides attractive returns to our shareholders,”
said FPI Chairman and CEO Paul Pittman.
FPI’s renewable power portfolio currently has the capacity to
produce more than 110 megawatts of electricity, across three
operational wind projects and five solar projects. For perspective,
that’s enough electricity to power 20,900 U.S. homes, according to
methodology used by the Solar Energy Industries Association. The
planned Clark County development will add additional generation
capacity.
While solar projects replace farm rents entirely, wind projects
supplement existing farm rents because agricultural production can
continue around wind turbines. The chart below provides an overview
of the Company’s energy portfolio, including expected revenue from
the new solar project once it is operational.
Energy
Type
States
Total
Acres
Avg.
Energy Revenue/Acre
Avg.
Increase Over Farm Rent Alone
Solar
IL, NC
2,026
$578.15
107%
Wind*
CO, NC
11,320
$25.66
35%
*Wind leases are in addition to
farm leases, as farms can continue agricultural production.
“Including the Clark County project, energy tenants account for
nearly $1.5 million in revenue a year,” Pittman explained. “Given
the long-term nature of solar and wind leases – ranging from 15 to
40 years – these projects reduce risk for the Company and provide
long-term inflation protection.”
FPI also has more than 13,700 additional acres of renewable
energy projects under option or at various stages of development
and planning. Option payments generate, on average, $45 per acre in
additional annual income above farm rents.
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 more
than 185,750 acres in 18 states, including Alabama, Arkansas,
California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,
Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North
Carolina, South Carolina, 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: risks relating to the commencement or completion of
construction and development of the solar and wind projects
discussed in this press release, the anticipated rents on solar and
wind projects relative to existing rents, the timing and amount of
rents expected to be received on the solar and wind projects
discussed in this press release, the progression of the Company's
other renewable energy projects, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220824005204/en/
Phillip Hayes phayes@farmlandpartners.com
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Farmland Partners (NYSE:FPI)
Historical Stock Chart
From Apr 2023 to Apr 2024