Three months after raising $50 million at its stock market flotation, Farmland Partners is planning to raise further cash through another share sale in order to fund the acquisition of $100 million in U.S. farms. Farmland Partners is in the process of identifying and reviewing more than 10 U.S. farms encompassing 20,000 acres with a combined price estimated to total $100 million. To fund the purchases the farmland investment group is planning to offer 3.71 million shares with the option to underwriters to sell an additional 557,620 shares. Assuming the underwriters opt to sell the additional shares, Farmland Partners anticipates to raise $54.4 million from the sale, and plans to borrow an additional $30 million from state-backed Farmers Mac Mortgage Securities. Since its flotation in April, Farmland Partners has grown its farmland portfolio from 7,300 acres to almost 25,000 acres with purchases in Colorado totaling more than 15,000 acres, increasing its exposure to wheat which it previously had minor exposure. Farmland Partners leases its properties to take advantage of farmland returns which according to the National Council of Real Estate Investment Fiduciaries (NCREIF) have averaged 12.2% since 1992 when considering rents and depreciation.
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