Farmland Partners Inc. Announces Expansion of the Farmer Mac Facility to $150 Million and Closing of $30.8 Million of Farm Acquisitions
DENVER, Dec. 23, 2014 /PRNewswire/ -- Farmland Partners Inc. (NYSEMKT: FPI) (the "Company") today announced the expansion of the secured note purchase facility with the Federal Agricultural Mortgage Corporation (NYSE: AGM and AGM.A) ("Farmer Mac") from $75 million to $150 million. Additionally, the Company announced the issuance under such facility of a $30.9 million, three-year, interest-only bond with a fixed interest rate of 2.56%, bringing the total principal amount outstanding under the facility to $81.1 million. Bonds issued under this facility are secured by mortgage loans on agricultural real estate owned by the Company that have an effective loan-to-value ratio of up to 60%.
The Company also announced the closing of the previously announced acquisition of seven row crop farms in South Carolina for a revised purchase price of $27.5 million and the closing of the acquisition of an approximately 1,300-acre farm in Arkansas for $3.3 million. These closings bring the Company's acquisition totals to approximately $128 million and 39,000 acres since the initial public offering in April, including $92 million and 22,000 acres in the fourth quarter alone. "The successful closing of the South Carolina acquisition caps a busy fourth quarter during which we increased the overall size of our portfolio while creating a strong presence in the Corn Belt, the Delta, the Southeast, and the Plains," said Paul Pittman, CEO of Farmland Partners Inc.
"The expansion of the secured purchase note facility with Farmer Mac is indicative of our strong relationship with a leading credit provider to the U.S. agricultural industry while giving us increased acquisition capacity heading into next year," said Luca Fabbri, CFO of Farmland Partners Inc. "As previously discussed, we intend to maintain overall leverage of approximately 40% to 50%, based on current estimated values."
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 73 farms with an aggregate of approximately 46,441 acres in Illinois, Nebraska, Colorado, Arkansas, Louisiana, Mississippi, and South Carolina. 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 Company's future leverage. 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. 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, dated July 24, 2014, related to its latest public offering.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/farmland-partners-inc-announces-expansion-of-the-farmer-mac-facility-to-150-million-and-closing-of-308-million-of-farm-acquisitions-300013463.html
SOURCE Farmland Partners Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article