Farmland Partners Asset Appreciation Leads to Expected Special Distribution of Between $0.20 and $0.38 per Share

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) announces an update to its expected special dividend due to significant gains from asset sales in 2023. The special dividend is expected to be between $0.20 and $0.38 per share, in addition to the quarterly dividend of $0.06 per share declared earlier. The dividend will be officially declared in December, with a payment date in January 2024.

Positive

• 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.

Negative

• None.

DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced an update to its expected special dividend, resulting from the significant appreciation of assets sold during 2023.

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 and $0.38 per share of common stock and Class A Common OP Unit. This amount could decrease or increase with asset sale transactions that have not been finalized.
• Note: the special dividend described herein is in addition to the quarterly dividend of $0.06 per share of common stock and Class A Common OP Unit that was declared on October 24, 2023. For more details, please see “Note 12—Subsequent Events” of the Company’s 9/30/2023 10-Q.

“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 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 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.

FAQ

What is the special dividend announcement from Farmland Partners Inc. (NYSE: FPI)?

The special dividend is an update resulting from significant appreciation of assets sold in 2023, expected to be between $0.20 and $0.38 per share, in addition to the quarterly dividend of $0.06 per share declared earlier.

When will the special dividend be officially declared and paid?

The special dividend is expected to be officially declared in December to stockholders of record on a date later in December, and to be paid in January 2024.

What is the reason behind the special dividend?

The special dividend is required to remain in compliance with REIT income distribution rules, as a result of substantial gains generated from selectively selling farmland that is no longer a long-term strategic fit for the portfolio.

What did FPI's President and CEO, Luca Fabbri, say about the special dividend?

Luca Fabbri highlighted that the special distribution is tangible proof of the power of appreciation in the asset class and the significant upside in the current price of FPI's common stock, showcasing the strength of the farmland marketplace.