Farmland Partners, the New York Stock Exchange-listed farmland investment firm, made nine acquisitions last week for its portfolio of US farmland holdings. Its current trading price is $9.85.
The new acquisitions are located in Arkansas and Nebraska and total approximately 6,080 acres, at a value of $25 million.
The firm’s $20.7 million debt facility, from a three-year 2.4 percent note issued to the Federal Agricultural Mortgage Corporation, has been increased to $75 million. The Corporation, commonly known as Farmer Mac, is a rural credit lender created by the US Congress.
The firm is also issuing a $5.46 million three-year, interest-only bond at 2.35% under the Farmer Mac facility.
Analysts producing coverage on the NYSE-listed Real Estate Investment Trust firm were positive about the firm’s debt financing earlier this year, despite row crop price volatility, which are Farmland Partner’s primary products on their farms.
“Despite strong competition in farmland markets from owner/operators, our structure and approach allows us to find investment opportunities with attractive prices and cap rates, and we continue to expand our portfolio and our tenant base,” said Paul Pittman, chief executive of Farmland Partners Inc. “The increase of the borrowing capacity under the debt facility with Farmer Mac demonstrates the strength of our relationship with a leading credit provider in the US agricultural space and gives us greater access to debt financing at very attractive terms.”