Farmland Partners Inc. (NYSE: FPI) (the “Company” or “FPI”) today announced that it sold 862 acres of farmland in White County, Arkansas, for $3.7 million – an approximate gain of 24% over net book value.
“The farmland real estate sector is still open for business. We continue to hunt for prime land to acquire, and we are always willing to entertain strong offers for existing properties in our portfolio,” explained Luca Fabbri, FPI’s President and CEO. “Sales like this one allow us to capture asset appreciation for our shareholders and redeploy capital.”
FPI sold the land to a local farmer who owns a nearby cotton gin and plans to grow cotton on the property. As part of the transaction, FPI will retain all the solar energy option payments currently being made on the tract and will retain a 30% interest in future revenue created if the renewable energy project enters construction during the option period.
After the disposition, the Company’s footprint in Arkansas totals nearly 12,000 acres.