DENVER, March 8, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company" or "FPI") announced today that it has sold 2,811 acres across eight farms to Promised Land Opportunity Zone Farms I, LLC ("OZ Fund"). The total purchase price was $18.3 million. FPI repaid $7.8 million of debt, received $8.5 million of cash proceeds, and received $2.0 million in a convertible note. In January 2021, FPI announced its partnership with the OZ Fund, a private investment vehicle focused on acquiring and improving farmland in qualified opportunity zones in the United States, as designated under U.S. tax provisions enacted in 2017.
"We are pleased to close the first transaction with the OZ Fund and look forward to scaling FPI's asset management capabilities," stated Paul Pittman, FPI's Chairman and CEO. "With strong commodity prices projected for 2021, we believe the outlook for farmers is very favorable."
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 approximately 152,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 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.
About Servant Financial
Servant Financial, Ltd. is a Chicago-based investment management firm founded in 2003. The firm serves the diverse investment, risk management, and finance needs of individuals, high net worth clients and family offices. Servant Financial focuses on alternative investments – private equity and hedge funds, ETFs, and socially responsible investments. Additional information: www.servantfinancial.com or (630) 264-0127.
This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements concerning the transaction, the anticipated timeline for closing, the Company's ability to sell additional properties to the OZ Fund, the anticipated gross proceeds from the sales to the OZ Fund, the anticipated managements fees to be received by FPI, and the ability of the OZ Fund to acquire additional farmland properties. 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 ability to consummate the transaction described above, satisfaction of qualified opportunity zone regulations as determined by OZ Fund third-party advisors, and the general economic conditions. 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.
SOURCE Farmland Partners Inc.