Company Release - 06/23/2014 09:00
Farmland Partners Inc. Announces Agreement for Acquisition of Arkansas Farm
DENVER, June 23, 2014 /PRNewswire/ -- Farmland Partners Inc. (NYSEMKT: FPI) (the "Company") today announced that it has entered into a purchase agreement to acquire an approximately 1,250-acre row crop farm in Arkansas for approximately $4.6 million in cash. The Company anticipates that the unlevered annual cash return from a lease on this property will be in excess of 5% per annum, which is in line with the Company's other recent acquisitions.The acquisition is subject to customary closing conditions.
"This transaction is expected to diversify our portfolio both in terms of region and crop type. The Delta is a strong agricultural region and we anticipate doing more transactions in the area," said Paul Pittman, CEO of Farmland Partners Inc. "Continued diversification of our farmland portfolio and of our tenant base is a cornerstone of our expansion strategy."
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 40 farms with an aggregate of approximately 23,000 acres in Illinois, Nebraska and Colorado. 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.
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. The Company faces many risks that could cause its actual performance to differ materially from the results contemplated by its forward-looking statements, including, without limitation, the risks related to leasing farmland to third-party tenants, including delays in executing new leases and failure to negotiate leases on terms that will enable the Company to achieve its expected returns. 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.