DENVER–(BUSINESS WIRE)– Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced that it sold 862 acres of farmland in White County, Arkansas, for $3.7 million – an approximate gain of 24% over net book value.
“The farmland real estate sector is still open for business. We continue to hunt for prime land to acquire, and we are always willing to entertain strong offers for existing properties in our portfolio,” explained Luca Fabbri, FPI’s President and CEO. “Sales like this one allow us to capture asset appreciation for our shareholders and redeploy capital.”
FPI sold the land to a local farmer who owns a nearby cotton gin and plans to grow cotton on the property. As part of the transaction, FPI will retain all the solar energy option payments currently being made on the tract and will retain a 30% interest in future revenue created if the renewable energy project enters construction during the option period.
After the disposition, the Company’s footprint in Arkansas totals nearly 12,000 acres.
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 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. In addition, FPI owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. 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.
