Farmland Partners Extends $3.5 Million Farm Loan
DENVER--(BUSINESS WIRE)-- Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) loaned $3.5 million to a Colorado farm family on March 4 as part of the FPI Loan Program.
The loan, which will be repaid over three years, is being collateralized with irrigated farmland owned by the borrower and has a loan-to-value ratio of approximately 50 percent.
“We reopened the FPI Loan Program last year as a complement to our core farmland investment business because we believe it can provide an important capital source to hard-working farmers who require more flexibility than is available from traditional lenders,” said Richard Keck, FPI’s Vice President of Operations and manager of the FPI Loan Program.
The Company’s existing infrastructure and relationships within the agricultural community enable it to quickly source, underwrite, close, and service loans designed to help qualified borrowers unlock land equity that is often unavailable through traditional banking practices. The FPI Loan Program has also helped farm families refinance, consolidate, and streamline maturing debt.
“Ag lenders are sometimes unable to assist farmers who are growing rapidly, managing generational transitions, or recovering from cyclical losses. We partner with those farmers to build uniquely tailored loans backed by real estate,” FPI Chairman and CEO Paul Pittman explained. “These loans create additional value for our shareholders by providing profitable debt financing opportunities at little operational expense.”
FPI targets the 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 makes loans to farmers secured by farm 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, Missouri, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and more than 100 tenants. The Company elected 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. Additional information: www.farmlandpartners.com or (720) 452-3100.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements with respect to the reopening of the FPI Loan Program and anticipated benefits to shareholders, the Company’s operational expertise and existing infrastructure and relationships within the agricultural community, our outlook, proposed and pending acquisitions and dispositions, the potential impact of trade disputes and recent extreme weather events on the Company’s results, financing activities, crop yields and prices and anticipated rental rates. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or similar expressions or their negatives, as well as statements in future tense. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market 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 indebtedness at or prior to maturity on favorable terms, or at all, availability of qualified personnel, changes in the Company’s industry, interest rates or the general economy, adverse developments related to crop yields or crop prices, the degree and nature of the Company’s competition, the timing, price or amount of repurchases, if any, under the Company’s share repurchase program, the ability to consummate acquisitions or dispositions under contract and the other factors described in the section entitled "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and the Company’s other filings 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 does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Phillip Hayes
phayes@farmlandpartners.com
Farmland Partners, Inc
Symbol: FPI
CIK: 1591670
Exchange: NYSE
Founded: 2013 (11 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Small-Cap
REIT Sector: Specialty
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
Latest Price: $11.18
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Last updated: 2024-11-21 - v1.3