DENVER–(BUSINESS WIRE)–Farmland Partners Inc. (NYSE: FPI) (the “Company” or “REIT”) loaned $3.5 million to a Colorado farming family on March 4 under the FPI Loan Program.
The loan, which will be repaid over three years, is secured by irrigated agricultural land owned by the borrower and has a loan-to-value ratio of approximately 50%.
“We re-opened the REIT Loan Program last year to complement our core farmland investing business, as we believe it can provide an important source of capital for hard-working farmers who need more flexibility than is available from traditional lenders,” said Richard Keck, Vice President of the REIT. President of Operations and Manager of the REIT Lending Program.
The Company’s existing infrastructure and relationships within the farming community enable it to quickly source, underwrite, close and service loans designed to help qualified borrowers unlock often unavailable land capital through traditional banking. The REIT loan program has also helped farm families refinance, consolidate and rationalize maturing debts.
“Agricultural lenders are sometimes unable to help farmers experiencing rapid growth, managing generational transitions or recovering from cyclical losses. We’re partnering with these farmers to build unique, tailored, real estate-backed loans,” explained FPI Chairman and CEO Paul Pittman. “These loans create additional value for our shareholders by providing profitable debt financing opportunities at low operational costs. »
REIT targets origination of loans between $500,000 and $10 million.
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high quality North American farmland and provides loans to farmers secured by agricultural real estate. As of the date of this release, the Company owns and/or manages approximately 186,000 acres in 19 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana , Iowa, Kansas, Louisiana, Michigan, Mississippi and Missouri. , Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have around 26 types of crops and over 100 tenants. The Company has elected to be taxed as a real estate investment trust, or REIT, for US federal income tax purposes, beginning with the tax year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including, without limitation, statements regarding the reopening of the REIT Loan Program and expected shareholder benefits, expertise operational and existing infrastructure and relationships within the agricultural community, our outlook, proposed and pending acquisitions and divestitures, the potential impact of trade disputes and recent extreme weather events on the Company’s results , financing activities, crop yields and prices and expected rental rates. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “should”, “could”, “would”, “predict”, “potential”, “continue”, “expect”. , “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” or similar expressions or their negatives, as well as statements in the future tense. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, beliefs and expectations, these forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ significantly from those established. in forward-looking statements. Some factors that could cause such a difference are: general volatility in the financial markets and in the price of the Company’s common stock, changes in the Company’s business strategy, availability, terms and deployment of capital, the Company’s ability to refinance existing debt on or before maturity on favorable terms, or not at all, the availability of qualified personnel, changes in the Company’s industry, interest rates or the general economy, adverse developments relating to crop yields or prices, the degree and nature of the Company’s competition, the timing, price or amount of redemptions, if any, under the program repurchase of the Company’s shares, the ability to make acquisitions or divestitures under contract and the other factors described in the section entitled “Risk Factors” of the Company’s annual report. the Company on Form 10-K for the fiscal year ended December 31, 2021 and other documents filed by the Company with the Securities and Exchange Commission. Any forward-looking information presented herein is made only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unforeseen events or otherwise.