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Farmland Partners (FPI) Boosts Portfolio With Indiana Farm

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Farmland Partners Inc. (FPI - Free Report) has added the first Indiana farm to its portfolio for $2.1 million. These 161 acres of cropland in Benton County comprise a corn and soybean farm. The farm consists of two adjoining tracts and is leased through the end of the year.

Reflecting positive investors’ sentiment, FPI shares were up 1.41% to $14.34 during Monday’s regular trading session.

Amid the current market conditions and given the productivity history, the property is expected to command solid rental rates in 2023, per management. In addition to the rental income, the asset is likely to experience continued appreciation.

According to the most recent data from the U.S. Department of Agriculture, since 1970, agricultural land in Indiana has averaged 5.9% in annual appreciation, which is encouraging. Hence, this property is a strategic buy for Farmland Partners. The company also plans to add more properties in Indiana.

This farmland REIT also recently extended its asset management portfolio by 4,488 acres. Further, the company bolstered its brokerage business with the addition of William Hughes, who was the president of U.S. Agri-Services Group LLC, to its staff.

Hughes brought the firm’s clients to Farmland Partners. He will carry on managing farms in Colorado, Illinois and Missouri on behalf of third parties. Further, he will serve as a broker with Murray Wise Associates, which is a subsidiary of FPI.

Along with the more than 160,000 acres it owns, Farmland Partners will now be managing roughly 30,000 acres for third parties.

Currently, Farmland Partners carries a Zacks Rank #3 (Hold). Over the past six months, shares of the company have risen 6.4% against the industry’s decline of 14.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some key picks from the REIT sector include Prologis (PLD - Free Report) and Extra Space Storage Inc. (EXR - Free Report) .

Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.0%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.

The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved marginally upward in the past month to $8.46. Extra Space Storage’s long-term growth rate is projected at 8.7%. EXR presently carries a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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