American Farmland Announces Review of Strategic Alternatives
April 14 2016 - 4:01PM
Business Wire
American Farmland Company (NYSE MKT:AFCO) (the “Company”), a
specialized real estate investment trust focused on the ownership,
acquisition, development and management of a portfolio of
diversified, high-quality U.S. farmland, today announced that its
Board of Directors has authorized the Company to commence a review
of strategic alternatives to enhance shareholder value.
Since the Company’s October 19, 2015 initial public offering,
its shares have consistently traded at a substantial discount to
net asset value which, as of December 31, 2015, was estimated to be
$10.05 per share. The Company’s net asset value is based upon
independent third-party appraisals of its farms which were
performed as of December 31, 2015. The Company has retained
Citigroup Global Markets Inc. and Raymond James & Associates,
Inc. as its financial advisors and Goodwin Procter LLP as legal
counsel to assist in a comprehensive analysis of all potential
strategic alternatives. Alternatives to be explored may include,
among others, joint venture arrangements, a merger of the Company,
or a sale of all or part of the Company and/or its assets. The
Company noted that there can be no assurances that the strategic
alternatives review process will result in the Company pursuing a
particular transaction or the consummation of any transaction. The
Company has not set a definitive timetable for completion of the
process and does not intend to disclose further developments until
its Board of Directors approves a specific action or otherwise
concludes the review of strategic alternatives.
FOR ADDITIONAL INFORMATION
For additional information about the Company, please see the
“Investor Relations” section of American Farmland Company’s website
at www.americanfarmlandcompany.com.
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, located
in select major agricultural regions throughout the United States.
As of the date of this release, the Company’s portfolio consists of
22 farms located on both coasts as well as in the Corn Belt and the
Delta regions and consists of approximately 18,322 gross acres of
farmland, with more than 21 major crop types (approximately 40 when
including crop varieties).
FORWARD-LOOKING STATEMENTS
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements include, without
limitation, statements concerning projections, predictions,
expectations, estimates, or forecasts as to the Company’s business,
financial or operational results, and future economic performance,
as well as statements of management’s goals and objectives and
other similar expressions concerning matters that are not
historical facts. The words “may,” “believe,” “estimate,” “expect,”
“intend,” “plan,” “predict,” “project,” “forecast,” “potential,”
“will,” “would,” “could,” “should,” “continue,” and similar
expressions or their negatives, as well as statements in future
tense, are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. The Company may not actually identify any viable
strategic alternatives, execute any strategic alternative, or
achieve the plans, intentions or expectations (including enhancing
shareholder value) disclosed in these forward-looking statements,
and you should not place undue reliance on these forward-looking
statements. Forward-looking statements are based on management’s
beliefs, assumptions and expectations of future performance, taking
into account all information available at the time those statements
are made or management’s good faith belief as of that time with
respect to future events and, accordingly, actual results or events
could differ materially from the plans, intentions and expectations
disclosed in the forward-looking statements. Estimates of the
Company’s value, such as net asset value (NAV), are based on a
variety of assumptions and there can be no assurances that such
estimates will prove accurate. Furthermore, these forward-looking
statements should be considered as subject to the many risks and
uncertainties that exist in the Company’s operations and business
environment. Such risks and uncertainties could cause actual
results to differ materially from those projected. These
uncertainties include, but are not limited to, economic, business
and financial conditions, the Company’s business strategy and
leverage, the Company’s ability to identify and implement any
viable strategic alternatives, generate sufficient cash flow to
service outstanding indebtedness, the Company’s ability to obtain
outside financing, availability, terms and deployment of capital,
general volatility of the capital markets and the market price of
the Company’s common stock, industry, interest rates or the general
economy, degree and nature of competition, risks generally
associated with real estate acquisitions, dispositions and
development, the Company’s ability to identify farms to acquire and
to complete acquisitions, the Company’s ability to effectively
manage growth, the ability of the Company’s tenants to successfully
manage their business and pay contractual rents when due, the
variability in revenues relating to participating rent from crop
yields, crop prices, the timing of payments or other factors,
regulatory and tax law changes and other risk factors, including
those detailed in the sections of the Company’s most recent 10-K
and other filings with the SEC titled “Risk Factors”. Except as
required by law, the Company undertakes no obligation to update
publicly any forward-looking statements for any reason after this
date to conform these statements to actual results or changes in
the Company’s expectations.
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version on businesswire.com: http://www.businesswire.com/news/home/20160414006605/en/
American Farmland CompanyLindsey Sichel or Andreas Spitzer,
212-484-3000www.americanfarmlandcompany.com
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