Farmland Partners Increases Asset Management Portfolio Above $50 Million

Rhea-AI Summary

Farmland Partners Inc. (NYSE: FPI) announced a $29 million investment through its Promised Land Opportunity Zone Farms I, LLC, acquiring a farm in eastern North Carolina. This acquisition brings the OZ Fund's total portfolio value to approximately $53 million, covering around 8,300 acres across four states. The company increased its membership interest in the OZ Fund to about 10%, aiming to leverage its asset management capabilities for shareholder value through management fees.

Positive

• Investment of $29 million enhances farm portfolio value to approximately $53 million.
• Expansion of OZ Fund's portfolio to approximately 8,300 acres across four states.
• Increased membership interest in OZ Fund to about 10%.
• Potential for generating management fees adds value for shareholders.

Negative

• None.

DENVER, Sept. 1, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") today announced that Promised Land Opportunity Zone Farms I, LLC ("OZ Fund") recently closed a $29 million investment in a high-quality farm in eastern North Carolina.  Including improvement projects, the portfolio now approximates $53 million.  The North Carolina farm was purchased from a third-party seller and expands the OZ Fund's portfolio to approximately 8,300 acres across four states.

"The OZ Fund continues to scale and FPI is pursuing additional asset management opportunities," commented Paul Pittman, the Company's Chairman and CEO.  "We seek to partner with strong long-term investors, leveraging our internal sourcing, underwriting, and closing capabilities, to create value for FPI shareholders by generating management fees."

FPI serves as property manager of the OZ Fund.  With the funding for this transaction, FPI increased its membership interest in the OZ Fund to approximately 10%.

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 166,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have 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, 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 or Series B participating preferred 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-increases-asset-management-portfolio-above-50-million-301366700.html

SOURCE Farmland Partners Inc.

FAQ

What is the recent investment by Farmland Partners Inc. in North Carolina?

Farmland Partners Inc. announced a $29 million investment in a farm in eastern North Carolina, increasing its OZ Fund portfolio value to approximately $53 million.

How much land does the OZ Fund now manage after the investment?

After the investment, the OZ Fund's portfolio now manages approximately 8,300 acres across four states.

What percentage of the OZ Fund does Farmland Partners Inc. own now?

Farmland Partners Inc. has increased its membership interest in the OZ Fund to around 10%.

What is the significance of the $29 million investment for Farmland Partners Inc.?

The $29 million investment signifies strategic growth for Farmland Partners and potential for generating management fees, enhancing shareholder value.