DENVER, Nov. 30, 2017 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) ("FPI") announced today that it has completed its previously announced acquisition of permanent crop farmland from Olam International Limited ("Olam"). The acquisition covers approximately 5,100 acres of farmland with a purchase price of $110 million.
The properties are located in California's Central Valley and are dedicated to the production of almonds, pistachios and walnuts. FPI has entered into a 25-year triple-net lease agreement with Olam on a revenue share basis. During the term of the agreement, Olam will operate and maintain the properties and improvements.
Olam is a leading global agribusiness company with operations in 70 countries and nearly 70,000 employees. FPI is the largest publicly-traded farmland real estate investment trust in the U.S. FPI's portfolio is broadly diversified across crops and regions, spanning more than 160,000 acres owned or under contract.
Commenting on the transaction, Paul Pittman, FPI Chairman and CEO, said, "We are excited to work with Olam and look forward to building upon this relationship. We have a high degree of respect for Olam's team of exceptionally talented operators. Further, we look forward to bringing these properties into our portfolio. They are unique, high-quality farms in the heart of California's tree nut industry. The properties and associated agreements will bring higher cap rate permanent crop production into our portfolio furthering our goal of delivering a well-balanced portfolio of U.S. farmland to our stockholders. On an unlevered NOI basis, we expect these leases in 2018 to be accretive to our portfolio relative to the cost of our recently issued preferred security."
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 expected performance of the properties acquired from Olam. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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 or has under contract over 160,000 acres in 17 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia. We have approximately 30 crop types and 125 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.
SOURCE Farmland Partners Inc.