Farmland Partners Asset Appreciation Leads to Expected Special Distribution of Between $0.20 and $0.38 per Share
- The significant appreciation of assets sold in 2023 has led to the company's decision to pay a special dividend, showcasing the strength of the farmland marketplace and the upside in the current price of FPI's common stock.
- None.
FPI has been selectively selling farmland, focusing on properties that are no longer a long-term strategic fit for the portfolio. While these are not the best assets of the portfolio, their sales have generated substantial gains, requiring the Company to pay a special dividend, as detailed below, to remain in compliance with REIT income distribution rules.
Special Dividend Details:
- Consideration: cash.
- Timing expectation: to be officially declared in December to stockholders of record on a date later in December, and to be paid in January 2024.
-
Amount: FPI expects the special dividend to be between
$0.20 $0.38 -
Note: the special dividend described herein is in addition to the quarterly dividend of
$0.06
“Selectively pruning our portfolio in a strong farmland marketplace was a business priority this year, and those efforts have enabled us to improve our portfolio, using sales proceeds to buy back stock, reduce debt, and buy other attractive assets,” said Luca Fabbri, FPI’s President and CEO. “While required under Federal income tax rules, shareholders should regard this special distribution as tangible proof of the power of appreciation in our asset class and the significant upside in the current price of our common stock.”
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 nearly 178,000 acres in 20 states, including
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 the special dividend and the timing and amount thereof. 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 the actual amount of the special dividend could differ from those set forth in the forward-looking statements depending on whether sales of certain farms close on the anticipated timeline. 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/20231108106115/en/
Phillip Hayes
phayes@farmlandpartners.com
Source: Farmland Partners Inc.
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