Farmland Partners Inc. (NYSE: FPI), an internally managed real estate company focused on North American agricultural property, announced the $289 million sale of a portfolio to Farmland Reserve Inc., a nonprofit organization owned by The Church of Jesus Christ of Latter-day Saints.
The portfolio consists of 46 properties comprising 41,554 acres of farmland in Arkansas, Florida, Louisiana, Mississippi, Nebraska, Oklahoma, and the Carolinas. The all-cash transaction generated a total gain of approximately $50 million for Farmland Partners, or approximately 21% over the aggregate net book value of the farms within the portfolio.
“We are grateful for the opportunity to work with Farmland Partners to acquire this unique portfolio of high-quality farmland,” said Farmland Reserve CEO Doug Rose. “We’re also gratified they saw us as the right buyer for these properties and the farmer-tenant relationships that come with them. As an investor with a long-term vision, we look forward to leasing these productive farms to local farmers for many years to come.”
Farmland Partners stated it has already used $146.6 million of the proceeds from the transaction to reduce its debt, and further debt reductions are being considered. In addition, remaining capital may be deployed for stock buybacks, new farmland acquisitions, and other corporate purposes.
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I hope it’s not China companies in disguise buying it!
No, it is not.
I sincerely pray this land will still stay as farm country and not be turned into housing and not being purchased by foreign governments
It’s happening in PA