DALLAS, Sept. 14, 2015 (GLOBE NEWSWIRE) — Stonegate Capital Partners has recently initiated coverage on Farmland Partners, Inc. (NYSE:FPI).
Company Description
Farmland Partners, Inc., seeks out what management deems to be high value primary crop farmland for acquisition. FPI targets land cultivating primary crops such as grains, oilseeds, forage crops, and cotton for its appreciation potential and historically reliable income generation. At the time of its IPO in April 2014, Farmland purchased 38 farms initially adding over 7,300 acres to its portfolio; as most recently reported, the company now boasts over 122 farms, encompassing over 71,000 acres of prime farmland in North America. Farmland’s main source of reported revenue comes from leases with farm operator tenants on this land. The company is incorporated in Maryland and operates as a real estate investment trust (REIT) for tax purposes.
Summary
Farmland Partners brings to the marketplace a unique opportunity for investors looking to benefit from both real estate appreciation and current income in a risk-adjusted manner. With an experienced management team strategically focused on growth, and being one of only two publicly-traded farming REITS, FPI is successfully generating increasing returns for its investors by:
- Identifying farmland for acquisition that holds appreciation potential and adds diversification to the FPI portfolio by region, crop type, or size; in excess of 64,000 acres have been added since its IPO in April 2014 Capitalizing on a highly fragmented marketplace where the majority of farms are still family-owned with an increasing average age of the owner/operator
- Negotiating favorable leases on farmland with seasoned farmer tenants growing primary crops that are historically more resilient to short-term supply/demand issues and thus pricing volatility
- Operating on a lean overhead budget with members of management prequalifying tenant farmers and striving to bring economies of scale to the overall group through existing relationships and industry experience
- Focusing on a target market that addresses a projected 45% increase in global grain demand by 2050 with only a 4% increase in available farmland over the same time period
- Delivering consistently increasing dividends as an internally managed REIT; Q215 saw a 10% dividend increase, the second increase of this size since its original dividend in May 2014
- Closing on 25 farm acquisitions in eight states for a total of $107.8 million during the 2nd quarter, representing total acreage of 19,156; the transactions were financed with cash, common stock, and operating partnership units
- Successfully executing a follow on offering of 3M shares at $11.00 per share as well as an overallotment of 360,000 shares to further strengthen its balance sheet for future acquisitions (subsequent to quarter-end – July 2015)
- Having recruited a highly experienced management team led by Paul Pittman, founder and largest shareholder, with extensive backgrounds in farming, law, investment banking, as well as business start-ups.
We believe that Farmland Partners represents a total return story for investors. The current yield of 5% coupled with the long-term appreciation potential of farmland prices should result in a growing Net Asset Value (NAV) and stock price.
The full report can be accessed by clicking the following link:
http://www.stonegateinc.com/reports/FPI_Sept_2015 Finalv1.pdf
About Stonegate Capital Partners
Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high quality investment opportunities.
CONTACT: Stonegate Capital Partners
214-987-4121