Farmland Partners Revamps Portfolio With Strategic Dispositions And Farm Acquisition

Farmland Partners Inc. FPI concluded several transactions in 3Q23, marking significant developments in its portfolio. It successfully sold over 13,500 acres spread across six states and acquired a substantial farm in Louisiana.

The transactions included the sale of farmlands in states like California, Colorado, Georgia, Illinois, Louisiana, and Kansas, generating over $70 million in total. This represented a gain of approximately 17% on the sale.

The acquisition involved a 1,523-acre farm in Morehouse Parish, Louisiana, which is in proximity to FPI’s existing farmlands and is known for corn and soybean production. The farm was acquired for an estimated $11 million.

As of September 2023, FPI has sold farmland valued at over $120 million, yielding a profit of about $23 million. The company anticipates its total asset sales for the year to reach $170 million.

Also Read: Are Better Times Ahead For Farmland REITs?

The company’s strategic move to sell over 30 farms, especially those in water-challenged areas, underscores its commitment to optimizing asset value for shareholders. The proceeds have been instrumental in stock repurchases and debt repayment, as well as facilitating acquisitions in more viable locations.

Price Action: FPI shares are trading higher by 1.01% at $10.52 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.