Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) acquired, on November 18, four Ohio properties that house agricultural equipment dealerships for $17.2 million. The dealerships are operated by Ag-Pro, North America’s largest John Deere dealer.
“Farmland is and will continue to be FPI’s primary business, but this deal provided several strategic advantages for our Company and its shareholders,” explained FPI Chairman and CEO Paul Pittman. “The long-term lease in place should supply a steady income stream at a cap rate that’s higher than what we typically see in farmland. Additionally, this acquisition will further mitigate risk through portfolio diversification and establish a meaningful connection with a key player in the agricultural community.”
Technology and data collection have made agricultural equipment a primary component of farm productivity and sustainability, Pittman said, adding, “Forging a relationship with a company like Ag-Pro will enhance our reach into the agricultural business community.”
Ag-Pro was founded in 1958 and is headquartered in Boston, Georgia. Its footprint spans across seven states, currently operating 80 locations in Florida, Georgia, Tennessee, North Carolina, South Carolina, Ohio, and Kentucky. Ag-Pro offers a full line of agricultural equipment along with the aftermarket parts and service support to accompany it. The company also serves the lawn & garden and compact construction markets. Ag-Pro’s area of responsibility covers approximately 5.4 million agricultural acres in and around Ohio.
“We take pride in developing long-lasting partnerships with our farmers and customers,” said James Groover, President and CEO of Ag-Pro. “Farmland Partners shares this farmer-first mentality, which is one reason why this transaction made so much sense for us. We look forward to working with the FPI team.”
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 and/or manages more than 190,000 acres in 18 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, and Virginia. We have approximately 26 crop types and more than 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. Additional information: www.farmlandpartners.com or (720) 452-3100.
This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements with respect to the property acquisitions described herein, including improved diversification and risk mitigation within our portfolio and anticipated benefits to us from increased reach within the agricultural business community, our plans with respect to future strategic acquisitions, expected annual returns and capitalization rates with respect to the acquired properties, expected yields on acquired farmland, our outlook, proposed and pending acquisitions and dispositions, the potential impact of trade disputes and recent extreme weather events on the Company's results, financing activities, crop yields and prices and anticipated rental rates. 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 the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, the Company's ability to refinance existing indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in the Company's industry, interest rates or the general economy, adverse developments related to crop yields or crop prices, the degree and nature of the Company's competition, the timing, price or amount of repurchases, if any, under the Company's share repurchase program, the ability to consummate acquisitions or dispositions under contract and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, and the Company's other filings with the Securities and Exchange Commission. 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.