DENVER, June 3, 2015 /PRNewswire/ -- Farmland Partners
Inc. (NYSEMKT: FPI) (the "Company") today announced the closing of
its acquisition of eight row crop farms in South Carolina, North Carolina and Virginia comprising an aggregate of 15,042
acres (the "Farms") for consideration of $49.8 million in cash and an aggregate of
2,818,107 shares of common stock and units of limited partnership
interest in the Company's operating partnership. The Company also
entered into a five-year lease agreement with the seller for all
eight farms with an initial annual cash rent of approximately
$4.3 million, including for the 2015
crop year. At closing the Company collected 100% of the cash
rent due for the 2015 calendar year along with 10% of cash rent due
for calendar years 2016 through 2019. An additional 10% of cash
rent due for calendar years 2016 through 2019 will be collected in
September of this year. "The collection of a portion of the rents
in advance helps secure the rents for the five year term of the
lease," said Luca Fabbri, CFO of the
Company.
In connection with the closing of the Farms, the Company
announced that its Board of Directors has approved a quarterly cash
dividend of $0.1275 per share to be
paid on July 15, 2015 to shareholders
of record at the close of business on July
1, 2015. The annualized dividend of $0.51 per share represents a 10% increase over
the Company's previous quarterly dividend of $0.116 and a 4.6% yield based on the closing
price of the Company's common stock on June
2, 2015.
Additionally, the Company announced the expansion of the secured
note purchase facility with the Federal Agricultural Mortgage
Corporation (NYSE: AGM and AGM.A) from $150
million to $165 million, as well as the issuance of (i) a
$41.7 million, five-year,
interest-only bond with a fixed interest rate of 3.20% and (ii) an
$8.1 million, 11-month, amortizing
loan with an interest rate of one-month LIBOR plus 1.8%.
"Our largest acquisition to date allows us to enter two new
states, North Carolina and
Virginia, increasing our portfolio
to 68,550 acres in 10 states and enabling us to raise our dividend
for the third time since our IPO last April," said Paul Pittman, CEO of the Company. "Furthermore,
the expansion of the Farmer Mac Facility gives us flexibility as we
continue working through our robust acquisition pipeline."
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality primary row
crop farmland located in agricultural markets throughout
North America. The Company's
portfolio is comprised of 117 farms with an aggregate of 68,550
acres in Illinois, Nebraska, Colorado, Kansas, Arkansas, Louisiana, Mississippi, South
Carolina, North Carolina
and Virginia. The Company intends
to elect and qualify 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.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. Forward-looking statements are
subject to known and unknown risks and uncertainties, many of which
may be beyond the Company's control. The Company faces many risks
that could cause its actual performance to differ materially from
the results contemplated by its forward-looking statements,
including, without limitation, the risks related to leasing
farmland to third-party tenants, including delays in executing new
leases and failure to negotiate leases on terms that will enable
the Company to achieve its expected returns. These forward-looking
statements are based upon the Company's present expectations, but
the events, expectations, intentions or prospects suggested by or
reflected in these statements are not guaranteed to occur or be
achieved, and you should not place undue reliance on such
statements. Furthermore, the Company disclaims any obligation
to publicly update or revise any forward-looking statement to
reflect changes in underlying assumptions or factors, of new
information, data or methods, future events or other changes,
except as may be required by law. For a further discussion of these
and other factors that could impact the Company's future results,
performance or transactions, see the section entitled "Risk
Factors" in the Company's Annual Report on Form 10-K for the year
ended December 31, 2014 and other
documents filed by the Company with the Securities and Exchange
Commission.
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SOURCE Farmland Partners Inc.