Realty Income Corporation has partnered with Plenty Unlimited Inc. to support the development of Plenty’s indoor vertical farms. The strategic alliance will see Realty Income acquire and provide funding for properties to house Plenty’s indoor farms, with up to $1 billion of development opportunities available. The partnership represents an advancement in how indoor farming assets get capitalized and paves the way for their development as an asset class. With Plenty’s innovative technology platform and Realty Income’s real estate expertise, the two companies are positioned to revolutionize the future of sustainable agriculture.
Realty Income Corporation has partnered with Plenty Unlimited Inc., a technology-driven indoor farming company, to support the development of Plenty’s indoor vertical farms. The strategic real estate alliance will see Realty Income acquire and provide funding for properties to house Plenty’s indoor farms.
This agreement offers up to $1 billion of development opportunities. The first transaction of the alliance has Realty Income acquiring land and providing development funding for Plenty’s first indoor vertical farm campus near Richmond, Virginia. The farm expects to deliver over 20 million pounds of produce annually across multiple crops, with the first farm growing strawberries with Plenty’s partner, Driscoll’s, to serve the Northeast market.
Plenty is rewriting agriculture rules with its proprietary technology platform that can grow fresh produce year-round, anywhere in the world, with peak-season quality and up to 350x more yield per acre than conventional farms. The company’s sustainable business practices align with Realty’s values, which include giving more than they take in their community and environment.
Realty Income’s entry into agriculture technology provides another potential growth opportunity for the company. With over 11,700 real estate properties primarily owned under long-term net lease agreements with commercial clients, the company has declared 632 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 119 times since its public listing in 1994.
The predictability and positive unit economics of Plenty’s farms make it possible for the company to utilize more traditional forms of funding, such as this strategic alliance with Realty Income. The partnership represents an advancement in how indoor farming assets get capitalized and paves the way for their development as an asset class.
The CEO of Plenty, Arama Kukutai, said that the strategic alliance with Realty Income is a significant step forward in accelerating the deployment of their farms with vertical farm facilities that are purpose-built to support Plenty’s proprietary growing technology. The collaboration with Realty Income also sets the stage for potential expansion internationally in markets of mutual interest.
The strategic alliance between Realty Income and Plenty is a significant development in the indoor farming sector, which has the potential to revolutionize the way we think about food production. With Realty Income’s real estate expertise and Plenty’s innovative technology platform, the two companies are positioned to make significant impacts on the future of sustainable agriculture.
Image provided by Plenty Unlimited Inc.
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