DENVER, July 17, 2015 /PRNewswire/ -- Farmland Partners Inc. (NYSEMKT: FPI) (the "Company") today announced that it has entered into a purchase agreement to acquire a blueberry farm in Michigan comprised of approximately 181 acres for a purchase price of $2.5 million in cash. The acquisition is expected to close in the third quarter of this year, subject to customary closing conditions. In the first full year of the Company's ownership, this farm is expected to have an annual rental income of 8% to 10% of the purchase price. This farm adjoins the other Michigan blueberry farm the Company recently put under contract.
"This acquisition will increase our specialty crop holdings while further establishing our footprint among Michigan blueberry producers," said Paul Pittman, CEO of the Company. "Together with the blueberry farm we recently put under contract, we believe this farm will help us attract better tenants and get higher rents due to increased scale."
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality farmland located in agricultural markets throughout North America. As of July 17, the Company's portfolio was comprised of 123 farms with an aggregate of 71,480 acres (including three farms with an aggregate of 466 acres under contract) in Illinois, Nebraska, Colorado, Kansas, Arkansas, Louisiana, Mississippi, South Carolina, North Carolina, Virginia and Michigan. 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 ended 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 and expected lease and cap rates. 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 Annual Report on Form 10-K for the year ended December 31, 2014 and other documents filed by the Company with the Securities and Exchange Commission.
SOURCE Farmland Partners Inc.