Farmland in Oklahoma is among more than 41,000 acres being sold by Denver-based Farmland Partners Inc. with Farmland Reserve, Inc. in a more than $289 million deal
Farmland Partners announced it is selling a portfolio of 46 farms comprising 41,554 acres of farmland in Oklahoma, Arkansas, Florida, Louisiana, Mississippi, Nebraska and the Carolinas. It was an all-cash deal but does not include any of the company’s farmland in Illinois, considered the most valuable it owns.
The company did not identify where the Oklahoma farmland is located nor how much it involved.
Luca Fabbri, FPI’s President and CEO said of the sale: “Farmland is a ‘total return’ investment, with asset appreciation typically accounting for a majority of the overall return on invested capital. We have consistently advised shareholders that our company is undervalued due to lack of recognition by the market of the appreciation in our asset base.”
He said the company intends to “deploy” the capital to reduce debt by nearly $140 million to buy back stock, pursue acquisitions and other corporate purposes.
“We are grateful for the opportunity to work with Farmland Partners to acquire this unique portfolio of high-quality farmland,” said Doug Rose, CEO of Farmland Reserve. “We’re also gratified they saw us as the right buyer for these properties and the farmer tenant relationships that come with them. As an investor with a long-term vision, we look forward to leasing these productive farms to local farmers for many years to come.”
Assuming that the pending Transaction closes, the company is expected to own and/or manage more than 140,000 acres of farmland in 15 states, including Arkansas, California, Colorado, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, and Texas.
In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand.
Farmland Reserve is an integrated investment auxiliary of The Church of Jesus Christ of Latter-day Saints. Farmland Reserve’s earnings support the mission of the Church and its religious, humanitarian, educational, and charitable good works.