Invest Like Bill Gates With This Market Leader

Bill Gates is the largest private owner of farmland in the United States, with a portfolio of nearly 250,000 acres, according to The Land Report.

When asked why he's been purchasing so much farmland in an "Ask Me Anything" session on Reddit, Gates responded, "I own less than 1/4000 of the farmland in the US. I have invested in these farms to make them more productive and create more jobs. There isn’t some grand scheme involved – in fact, all these decisions are made by a professional investment team."

If you think Gates is making a smart move by investing in farmland, you can do the same with this real estate investment trust (REIT) focused on farmland.

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Farmland Partners

Farmland Partners FPI owns, leases, and manages high-quality farmland. As of September 30, 2023, its portfolio consists of approximately 178,200 acres of farmland across 20 states, including Alabama, California, Florida, Iowa, Kansas, Missouri, South Carolina, Texas, and Virginia, making it the largest farmland REIT in the United States by acreage. Additionally, it owns land and buildings for four agriculture equipment dealerships in Ohio, which are leased to Ag Pro under the John Deere & Co. DE brand.

Farmland Partners currently pays a quarterly dividend of $0.06 per share, equating to $0.24 per share annually, which gives it a yield of about 2.1% at today's levels. While its yield isn't eye-popping, it's important to note that it paid a special dividend of $0.21 per share earlier this month because of strong asset appreciation. With the special dividend included, the company declared $0.45 per share in dividends in 2023, which would equate to a yield of about 3.9% at today's levels.

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• Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. 
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.

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