FPI Loan Program Closes Loan in Michigan
DENVER, Aug. 25, 2021 /PRNewswire/ -- Farmland Partners Inc. (NYSE:FPI) (the "Company") announced today the closing of a $2.1 million loan to a farmer in Michigan under the Company's loan program (the "FPI Loan Program"). The loan is due in 2023 with a loan-to-value ratio of approximately 65%. This loan unlocked equity in the farmer's land and was used to refinance the farmer's existing credit facilities.
Under the FPI Loan Program, the Company leverages its existing infrastructure to quickly underwrite loans to meet borrowers' funding needs, allowing farmers to generate liquidity from land equity that is often unavailable to farmers because of traditional lending practices. The Company expects farmer-borrowers to use the proceeds of the loan for a variety of purposes, including expanding operations, improving working capital, and supporting intergenerational transitions. The FPI Loan Program is expected to continue to complement the Company's current business of acquiring farmland and leasing it to farmers. Under the FPI Loan Program, the Company is targeting the origination of loans ranging from $500,000 to approximately $10 million dollars.
"We are pleased to assist this Michigan farm family refinance its balance sheet. Although the agriculture economy is strong, we believe there are opportunities for the Company to provide profitable debt financing to high quality borrowers," said Paul Pittman, CEO of the Company.
For more information, please contact Rich Keck at FPILoans@farmlandpartners.com.
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 161,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 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. 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 or Series B participating preferred 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, 2020, 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.
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SOURCE Farmland Partners Inc.
