Farmland Partners Acquires First Farm of 2022

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) announced the acquisition of a 177-acre farm in Mercer County, Illinois, for $1.475 million on January 28, 2022. This farm is expected to yield an annual return of 3.6% through an existing three-year cash lease. CEO Paul Pittman highlighted the strategic importance of this acquisition as part of FPI's expansion plans, aiming to enhance their portfolio, which now includes 185 farms across Illinois totaling 38,343 acres. The purchase marks a promising start to 2022 for the company, reinforcing its position as the largest publicly traded farmland REIT in the U.S.

Positive

• Acquisition of a 177-acre farm enhances overall portfolio.
• Expected annual yield of 3.6% from the farm lease.
• Company's strong positioning as the largest publicly traded farmland REIT.

Negative

• None.

DENVER, Jan. 31, 2022 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company" or "FPI") recently completed its first farm acquisition of 2022, a 177-acre tract in Mercer County, Illinois.

The corn and soybean farm was acquired on January 28 for $1.475 million, and its current three-year cash lease is expected to yield 3.6 percent annually. 

"With this purchase and a promising pipeline in place, 2022 is off to a great start for the Company," said FPI Chairman and CEO Paul Pittman. "We target properties and tenants with strong histories and bright futures. The Mercer County farm certainly fits that profile and adds to our robust portfolio in the state."

FPI is the nation's largest publicly traded farmland REIT by U.S. acreage. It now owns 185 farms in Illinois, spanning 38,343 acres across 19 counties.

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 approximately 186,600 acres in 19 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, South Dakota 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: 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, 2020, 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 original content:https://www.prnewswire.com/news-releases/farmland-partners-acquires-first-farm-of-2022-301470979.html

SOURCE Farmland Partners Inc.

FAQ

What farm did Farmland Partners Inc. acquire in January 2022?

Farmland Partners Inc. acquired a 177-acre farm in Mercer County, Illinois.

How much did Farmland Partners Inc. pay for the new farm?

The acquisition cost Farmland Partners Inc. $1.475 million.

What is the expected yield from the Mercer County farm acquisition?

The expected annual yield from the farm lease is 3.6%.

How many farms does Farmland Partners Inc. currently own?

Farmland Partners Inc. owns 185 farms across Illinois.

When was the Mercer County farm acquisition completed?

The acquisition was completed on January 28, 2022.