Farmland Partners announced its biggest deal to date since its April floatation, buying seven farms consisting of 6,819 acres in South Carolina for $28 million, or $4,100 per acre on average. This deal brings Farmland Partners’ portfolio to 48,000 acres – an increase of more than 40,000 acres since the group’s float. Despite this, shares in the group have failed to gain investor support, closing 26% down from the IPO price on Thursday, November 20th. Farmland Partners increased its latest payout dividend by 11% in an attempt to gain investor favor who it believes are undervaluing the company on reports of a downturn in land values. The latest Creighton Index of farmland prices indicated a rating of 30.0 – up from last month’s record low rating of 20.0, but still well below a rating of 50.0 which indicates a flat market. In October, the group announced a $10 million stock buyback program which it states should demonstrate its ability to generate positive returns not reflected in its stock price.
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