Company Release - 06/04/2014 09:00
Farmland Partners Inc. Announces Agreement for Acquisition of Nebraska Farm
DENVER, Colo., June 4, 2014 /PRNewswire/ -- Farmland Partners Inc. (NYSEMKT:FPI) (the "Company") today announced that it has entered into a purchase agreement to acquire an approximately 640-acre row crop farm in Morrill County, Nebraska for approximately $1.0 million. The Company intends to sign a five-year lease with the seller at an anticipated unlevered annual cash return of approximately 6.25%. The acquisition, which is subject to customary closing conditions, is expected to close on or before July 3, 2014.
"This is the second sale-leaseback transaction announced since our initial public offering in April, proving our ability to create value for our stockholders while establishing long-term partnerships with successful farmers," said Paul Pittman, CEO of Farmland Partners Inc. "This acquisition also shows how our business model allows us to integrate smaller transactions into our portfolio in a cost effective manner."
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality primary row crop farmland located in agricultural markets throughout North America. The Company's portfolio is comprised of 39 farms with an aggregate of approximately 10,500 acres in Illinois, Nebraska and Colorado, with an additional 12,500-acre farm in Colorado, the closing of which is pending. The Company intends to elect and qualify to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2014.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding the pending acquisition. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. These forward-looking statements are based upon the Company's present expectations, but the events, expectations, intentions or prospects suggested by or reflected in these statements are not guaranteed to occur or be achieved, and you should not place undue reliance on such statements. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes, except as may be required by law. For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled "Risk Factors" in the Company's final prospectus related to its initial public offering dated April 10, 2014.
SOURCE Farmland Partners Inc.
