Executes purchase and sale agreements to acquire a portfolio of
mature permanent crop farms
Will increase total farmland assets by more than 30% once
closed, is expected to be accretive to FFO
Hires dedicated senior finance executive with REIT management,
investment banking and public accounting experience for an orderly,
planned transition to CFO with no team departures
American Farmland Company (NYSE MKT:AFCO) (the “Company”)
announced late last week (i) that it had entered into three binding
purchase and sale agreements to acquire farms for an aggregate of
$65 million and (ii) the hiring of Andreas Spitzer, to serve
initially as Executive Vice President, Finance, and to transition
to Chief Financial Officer.
Thomas S.T. Gimbel, Chief Executive Officer of the Company,
remarked: “Either of these events alone would be a significant
accomplishment, and to announce both in the span of one week
underscores our goal to grow AFCO strategically, opportunistically
and methodically into a major diversified publicly traded farmland
REIT.”
Substantial, Accretive Acquisition
On December 17, 2015, subsidiaries of the Company (the “Buyers”)
entered into three binding purchase and sale agreements with Sun
Dial Farms, LLC and affiliates (the “Sellers”) to buy seven mature
permanent crop farmland properties aggregating to 2,186 gross acres
and 1,729 net plantable acres for a combined gross purchase price
of $65 million, which the Company intends to pay out of cash on
hand and borrowings. The farms are located across multiple counties
in California, each with its own well(s) and surface water. Crops
planted include almonds, lemons, and several other citrus varieties
as well as prunes. The acquisitions are scheduled to close in
January 2016, subject to the satisfaction of due diligence and
certain customary closing conditions, and are expected to be
accretive to Funds from Operations. The Company will lease the
properties to the Sellers. The leases will provide for both a fixed
base rent, as well as a formulaic revenue participation above a
fixed threshold, and the base rent and thresholds will have annual
escalators.
The Company has previously disclosed the strength and quality of
its acquisition pipeline as well as its focus on a disciplined and
opportunistic acquisition strategy. Robert Cowan, the Company’s
President and Chief Investment Officer, who has more than 30 years
of experience in farmland property analysis, investment,
acquisition and management, commented: “This is a portfolio of
gems, and it is rare to have such an extraordinary opportunity to
acquire a diversified portfolio of almonds and fresh citrus of this
scale and quality at one time.”
Financial Executive Hire
On December 11, 2015, the board of directors of the Company
appointed Andreas Spitzer, age 45, to serve as the Company’s
Executive Vice President, Finance, effective January 11, 2016.
Further, Mr. Spitzer will transition to, and serve as the Company’s
Chief Financial Officer during 2016. Currently and until Mr.
Spitzer’s transition to Chief Financial Officer, Geoffrey M. Lewis
has been and will continue to be the Company’s Chief Financial
Officer and Treasurer, positions he has held since the Company’s
inception in 2009. He will remain as an executive officer and
director of the Company following Mr. Spitzer’s transition to Chief
Financial Officer.
Mr. Gimbel, Chief Executive Officer of the Company, remarked “We
welcome Andreas and know he will be valuable to our strategy of
generating income as we continue to grow. Mr. Lewis was
foundational to the Company, having helped build it since
inception, and he will remain a core member of the executive
management team.” The Company previously disclosed its goal of
hiring full-time dedicated senior-level financial and accounting
personnel.
Mr. Spitzer has more than 20 years of experience from roles in
financial management, investment banking and public accounting. He
currently serves as Vice President, Finance for Equity One, Inc.
(NYSE:EQY), a public real estate investment trust company that
owns, manages, acquires, develops and redevelops shopping centers,
a position which he has held since 2013, and a position wherein he
leads the company’s financial planning and analysis and treasury
functions and provides support to the company’s investor relations
and capital markets activities. Mr. Spitzer received a Bachelor of
Science degree in Business, Accounting, Magna Cum Laude, from
Virginia Tech, and he received a Master of Business Administration
with Distinction in Finance from the Samuel Curtis Johnson Graduate
School of Management at Cornell University.
About American Farmland Company
American Farmland Company is an internally managed real estate
investment trust and a Maryland corporation focused on owning and
acquiring a diversified portfolio of high-quality farmland,
consisting of mature permanent, specialty/vegetable row and
commodity row crop farms, as well as farmland development projects,
located in select major agricultural regions throughout the United
States. The Company’s portfolio currently consists of 18 farms
located on both coasts as well as in the Corn Belt and the Delta
regions and consists of approximately 16,136 gross acres of
farmland, with more than 21 major crop types (approximately 40
sub-varieties are included).
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. We caution investors
that forward-looking statements are based on management’s beliefs
and on assumptions made by, and information currently available to,
management. When used, the words “anticipate”, “believe”,
“estimate”, “expect”, “intend”, “may”, “might”, “plan”, “will”,
“result”, and similar expressions which do not relate solely to
historical matters are intended to identify forward-looking
statements. These statements are subject to risks, uncertainties,
and assumptions and are not guarantees of future performance, which
may be affected by known and unknown risks, trends, uncertainties,
and factors that are beyond our control, including, without
limitation, the Company’s and Buyers’ ability to satisfy closing
conditions to the transactions described above, obtain financing,
as well as the performance of their obligations under the purchase
and sale agreements and other risks and uncertainties detailed from
time to time in the Company’s filings with the Securities and
Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, estimated, or projected. We expressly disclaim any
responsibility to update our forward-looking statements, whether as
a result of new information, future events, or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151221005501/en/
American Farmland CompanyLindsey Sichel Rubinstein,
212-484-3056Chief Administrative Officer, Chief Marketing Officer
& Executive Vice Presidentwww.americanfarmlandcompany.com
AMERICAN FARMLAND CO (AMEX:AFCO)
Historical Stock Chart
From Jun 2024 to Jul 2024
AMERICAN FARMLAND CO (AMEX:AFCO)
Historical Stock Chart
From Jul 2023 to Jul 2024