Farmland Partners Announces $8 million Staged Transaction for Conservation Land
--Three-Year Transaction Timeline Supports Ducks Fundraising Program--
Jan 14, 2021, 07:00 ET
DENVER, Jan. 14, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") announced today a series of agreements that will transfer ownership of approximately 1,268 acres in Virginia from FPI to Ducks Unlimited ("DU") over the next three years for total gross proceeds of $8 million. If all closings take place as expected, this transaction is expected to generate a gain of approximately $0.8 million, or 10.6%, relative to book value, for FPI shareholders.
The Virginia site resides in the Atlantic Flyway, one of four ancient pathways migratory birds use to travel from breeding grounds to wintering areas. The land is also adjacent to the Great Dismal Swamp, a National Wildlife Refuge that encompasses more than 112,000 acres.
"Farmland Partners has become an invaluable partner in conservation, and this newly acquired property will expand an existing protected habitat area by over 1,200 acres," said DU CEO Adam Putnam. "By protecting this historic landscape we will ensure future generations have the opportunity to enjoy this iconic area in the Atlantic Flyway for years to come."
Farmland Partners CEO Paul A. Pittman added, "The transaction represents a win-win for our shareholders and for a good cause. We look forward to working with the Ducks Unlimited team to see it through fruition. FPI is honored to continue the long tradition of farm owners supporting wildlife habitat preservation."
The transaction is structured in three separate tracts, with closings expected to take place over the next three years. The transaction on Tract A, which is approximately 231 acres, is set to close on January 30, 2021 for total gross proceeds of $0.8 million. Tract B, which is approximately 625 acres, is targeted to close on September 30, 2021 for total gross proceeds of $4.4 million, and has an outside closing date of November 30, 2022. Tract C, which is approximately 412 acres, is targeted to close on or before November 30, 2023 for total gross proceeds of $2.8 million. All closings are subject to customary due diligence. Closings on Tract B and Tract C are subject to DU's ability to raise the necessary funds. The Company will continue to receive the rent for each tract up until the time that the sale of the applicable tract closes.
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 approximately 155,000 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.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements concerning the transaction, the anticipated timeline for closing and the anticipated gross proceeds. 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 DU's ability to raise the necessary capital to acquire Tracts B and C on the anticipated timelines or at all, the ability to consummate the transaction described above and the general economic conditions. 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.
SOURCE Farmland Partners Inc.
