The publicly traded real estate investment trust (NYSE: FPI) added to its portfolio of North American farmland by acquiring 118 Illinois farms totaling more than 22,100 acres. “This transformative transaction makes FPI one of the largest owners of farmland in the Midwestern United States,” said CEO Paul Pittman. “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.”
Consideration included $50 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. Farmland Partners’ portfolio is comprised of 257 farms with an aggregate of 107,888 acres (including 5 farms totaling 8,525 acres currently under contract) in Arkansas, Colorado, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, Texas, and Virginia. Read more HERE.
Photo Credit: The Wall Street Journal