DENVER, March 3, 2016 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") today announced the closing of its previously announced acquisition of 118 farms totaling over 22,100 acres near Paris, Illinois for total consideration of $50.0 million in cash, 2,608,695 common units of limited partnership interest in the Company's operating partnership ("OP Units"), and $117 million in newly classified preferred OP Units. The common OP Units issued were valued at $11.50 per share, resulting in total consideration of $197 million.
The Company has entered into lease agreements with 18 tenants, 14 of whom farmed under the prior owners. With the addition of these new operators, the Company now has 72 tenants across 257 farms.
"This transformative transaction makes FPI one of the largest owners of farmland in the Midwestern United States," said Paul Pittman, CEO of the Company. "The increased scale of our operations will be reflected on our balance sheet and in our revenue, and the substantial number of new operators will add value to our volume purchasing program by increasing the total acreage operated by our tenants."
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. The Company's portfolio is comprised of 257 farms with an aggregate of 107,888 acres (including 5 farms totaling 8,525 acres under contract) in Arkansas, Colorado, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, Texas, and Virginia. 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.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. 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.