Farmland Partners Acquires Illinois Farmland

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) announced the acquisition of 291 acres of farmland in Schuyler County, Illinois, for $2.16 million at an auction on November 29. This property is strategically located near another FPI farm, which is expected to enhance operational efficiency and rental rates. The new farmland is leased to the existing tenant of a nearby FPI farm, promising strong rental income and potential asset appreciation, given that Illinois agricultural land has averaged 5.7% annual appreciation since 1970. As of now, FPI owns and manages approximately 195,000 acres across 19 states.

Positive

• Acquisition of 291 acres of farmland for $2.16 million adds to FPI's portfolio.
• Property expected to generate strong rental income due to existing tenant.
• Strategically located near another FPI farm to enhance operational efficiencies.
• Historical appreciation of agricultural land in Illinois at 5.7% annually since 1970.

Negative

• None.

DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced that it purchased 291 acres of farmland in Schuyler County, Illinois, for $2.16 million. FPI won the property during an auction held November 29.

“We continue to hunt for prime farmland that can be purchased at a good price, and we prioritize properties that are close to other FPI farms because it creates efficiencies and drives strong rental rates,” said Paul Pittman, FPI’s Chairman and CEO. “This acquisition checks both boxes and is located near another of our row crop farms.”

The newly acquired property is leased to the same tenant who rents FPI’s nearby farm. The farmland is expected to generate good rental income for the Company in addition to asset appreciation. Agricultural land in Illinois has averaged 5.7% in annual appreciation since 1970, according to the most recent data from the U.S. Department of Agriculture.

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 195,000 acres in 19 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, Texas, 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, 2021, 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/20230202005192/en/

Phillip Hayes

phayes@farmlandpartners.com

Source: Farmland Partners Inc.

FAQ

What farmland did Farmland Partners Inc. acquire?

Farmland Partners Inc. acquired 291 acres of farmland in Schuyler County, Illinois.

How much did Farmland Partners pay for the farmland?

Farmland Partners paid $2.16 million for the farmland acquisition.

When was the farmland auction held?

The farmland auction was held on November 29.

What is the strategic importance of this acquisition for Farmland Partners Inc.?

The acquisition is strategically important as it is located near another FPI farm, enhancing operational efficiencies and rental rates.

What is the expected rental income from the newly acquired farmland?

The farmland is expected to generate strong rental income as it is leased to the same tenant who currently rents another nearby FPI farm.