Farmland Partners Sells Land In Nebraska, South Carolina & Arkansas
Corporate Farmland Real Estate

Farmland Partners Continues Farmland Selling

Farmland Partners Inc. (NYSE: FPI), a leading agricultural real estate company, has announced the sale of 1,370 acres of farmland across Arkansas, Georgia, Illinois, and South Carolina. The transactions, which amounted to $8.9 million, resulted in a significant gain on sale of $3.7 million, marking an approximate 73% increase over the net book value of the assets.

Luca Fabbri, President and CEO of Farmland Partners Inc., underscored the role of asset appreciation in the returns from farmland investments. He added that good farmland continues to be highly sought-after, stating, “Sales like these, and dispositions planned in the coming months, help us capture those returns and generate value for our shareholders.” In 2023, FPI made farmland sales totaling $32.5 million, resulting in a collective gain of almost $8.7 million on sale.

FPI Sells Land (16/05/2023)

Farmland Partners Inc. (NYSE: FPI), the real estate company specializing in the ownership, management, and leasing of high-quality farmland, announced today the successful sale of over 3,288 acres of farmland across Nebraska, South Carolina, and Arkansas. The transactions, sold to the properties renting, amounted to $16.2 million, representing a significant gain on sale of more than $3.1 million, or approximately 24% over net book value.

Luca Fabbri, FPI’s President and CEO, stated that the transactions underscore the farmland’s appreciation potential and the farming economy’s robust health. “The proceeds from these asset sales are being used to generate value for our shareholders, reducing indebtedness and buying back stock at a discount to our estimate of its value,” Fabbri said. He also hinted at further dispositions in the future while emphasizing the company’s continued strategy to seek intelligent additions to its portfolio.

In addition to these sales, Farmland Partners Inc. also completed two property dispositions for $7.1 million, realizing a total gain on sale of $1.8 million in the quarter ending March 31, 2023. These transactions follow the company’s announcement on April 4 about selling 862 acres of farmland in White County, Arkansas, for $3.7 million, marking an approximate gain of 24% over net book value.

Fabbri further commented on the overall vitality of the farmland real estate sector, expressing FPI’s ongoing pursuit of prime land acquisition opportunities. “Sales like this one allow us to capture asset appreciation for our shareholders and redeploy capital,” he said.

The Arkansas farmland was sold to a local farmer who owns a nearby cotton gin and intends to cultivate cotton on the property. As part of the agreement, FPI will retain all the current solar energy option payments on the tract and a 30% interest in future revenue if the renewable energy project enters construction during the option period.

Post-disposition, Farmland Partners Inc.’s footprint in Arkansas amounts to nearly 12,000 acres, further asserting the company’s robust presence in the agricultural real estate sector.

Photo by Léon McGregor on Unsplash 

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