Farmland Partners Announces Several Asset Dispositions at a 17% Gain, and a Farm Acquisition

Rhea-AI Summary

Farmland Partners Inc. finalizes transactions, selling over 13,500 acres and purchasing a 1,523-acre farm in Louisiana.

Positive

• Sales of over 13,500 acres totaled more than $70 million, representing a gain on sale of approximately 17%.
• Acquisition of a 1,523-acre farm in Louisiana for approximately $11 million.
• Continued strength of the farmland market and value creation for shareholders through stock repurchases at a discount to their underlying value.

Negative

• None.

DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced that it finalized numerous transactions over the third quarter of 2023, including the disposition of more than 13,500 acres in California, Colorado, Georgia, Illinois, Louisiana, and Kansas, and the purchase of a 1,523-acre farm in Morehouse Parish, Louisiana.

The sales cumulatively totaled more than $70 million and represented a gain on sale of approximately 17%. The acquisition in Louisiana is nearby other FPI farmland and primarily produces corn and soybeans. It was purchased for approximately $11 million.

“We sold more than 30 farms this summer – many of which were in water challenged areas – and captured strong asset appreciation returns for our shareholders,” said Luca Fabbri, FPI’s President and CEO. “These sales show the continued strength of the farmland market and enabled us to create value for our shareholders through stock repurchases at a discount to their underlying value, and to redeploy capital on other priorities like debt repayment and new acquisitions in more sustainable locations.”

Through September 2023, FPI has disposed of more than $120 million of farmland, representing a total gain on sale of approximately $23 million. The Company’s currently projected asset sales for the year total $170 million.

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 178,000 acres in 20 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, Texas, and Virginia. 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 has approximately 26 crop types and over 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 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 on-going war in Ukraine and its impact on the world agriculture market, world food supply, the farm economy, and our tenants’ businesses; 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, 2022, 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/20231010308762/en/

Phillip Hayes

phayes@farmlandpartners.com

Source: Farmland Partners Inc.

FAQ

What transactions did Farmland Partners Inc. finalize?

Farmland Partners Inc. finalized the disposition of over 13,500 acres in various states and the purchase of a 1,523-acre farm in Louisiana.

What was the total sales amount for the disposed acres?

The sales of over 13,500 acres totaled more than $70 million.

What was the gain on sale percentage?

The gain on sale was approximately 17%.

How much did the Louisiana farm acquisition cost?

The Louisiana farm was purchased for approximately $11 million.

What did Farmland Partners Inc. do with the sales proceeds?

Farmland Partners Inc. used the sales proceeds for stock repurchases at a discount to their underlying value, debt repayment, and new acquisitions.