Farmland Partners — a real estate investment trust (REIT) that specializes in sale-leasebacks of U.S. farmland — has sold a 46-asset portfolio spanning more than 41,500 acres of farmland across eight states to an investment vehicle of The Church of Jesus Christ of Latter-day Saints for $289 million.
Farmland Partners Inc. (FPI) announced the all-cash transaction Monday, though the deal closed on Oct. 16. FPI gained $50 million from the transaction by securing a 21 percent increase over the aggregate net book value of the farms within the sold portfolio, the firm said.
The deal delivers 46 farms — totaling 41,554 acres of farmland in Arkansas, Florida, Louisiana, Mississippi, Nebraska, Oklahoma, South Carolina and North Carolina — to Farmland Reserve, an investment arm of The Church of Jesus Christ of Latter-day Saints, widely known as the Mormon church.
FPI announced it has already used $146.6 million of the proceeds to pay down existing debt costs.
Founded in 2013 and headquartered in Denver, the REIT’s core business is purchasing farmland and leasing it back to farmers. Farmland Partners also manages farmland through Murray Wise Associates, a third-party landlord vehicle it created.
It is unclear what The Church of Jesus Christ of Latter-day Saints plans to do with the newly acquired farmland. The church did not respond to requests for comment.
FPI owns 136,000 acres of farmland in 15 states and manages 47,000 thousand acres, according to the firm’s website. The REIT did not respond to requests for comment.
Brian Pascus can be reached at [email protected]
