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Farmland Partners (FPI) Reaps High Gains on Farmland Sales
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Farmland Partners Inc. (FPI - Free Report) recently made headlines with its strategic asset dispositions, which resulted in an impressive 17% gain as well as an additional farm acquisition. These developments underscore the company's commitment to maximizing shareholder value while maintaining a diversified and sustainable farmland portfolio.
In its latest announcement, FPI detailed its significant accomplishments in the third quarter, including the sale of more than 13,500 acres spread across California, Colorado, Georgia, Illinois, Louisiana and Kansas and the acquisition of a 1,523-acre farm in Morehouse Parish, LA. The total sales amounted to more than $70 million, realizing a gain of approximately 17%, highlighting the robust performance of FPI's farmland assets.
Luca Fabbri, the president and CEO of FPI, expressed satisfaction with the results, stating, "We sold more than 30 farms this summer – many of which were in water challenged areas – and captured strong asset appreciation returns for our shareholders." He also stated that the proceeds from these sales are being used to generate value for shareholders through stock repurchases at a discount to their underlying value, lowering indebtedness as well as new acquisitions.
This indicates that FPI is not only thriving in the market but also demonstrating a shrewd strategy by divesting properties in less sustainable areas to reallocate resources where they can be better utilized.
The acquisition in Louisiana, a region already home to FPI farmland, further attests to the company's commitment to strategic growth. This 1,523-acre addition primarily focuses on corn and soybean production and was purchased for around $11 million. This move strengthens FPI's presence in a favorable location and complements its diverse crop portfolio.
What makes FPI particularly enticing to investors is its continuous commitment to enhancing shareholder value. Through September 2023, the company had successfully disposed of more than $120 million worth of farmland, yielding a gain of approximately $23 million. FPI's targeted asset sales for the year are projected to reach $170 million, reflecting its proactive approach to unlocking the full potential of its assets.
These positive results reflect FPI's commitment to maximizing shareholder value through strategic asset management. As the company continues to capitalize on the demand for good farmland, investors can look forward to further profitable outcomes.
Currently, Farmland Partners carries a Zacks Rank #3 (Hold). Over the past month, shares of the company have declined 1.4%, wider than its industry’s fall of 6.8%.
The Zacks Consensus Estimate for Welltower’s 2023 FFO per share has been raised marginally over the past month to $3.56.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been raised marginally over the past month to $1.29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Farmland Partners (FPI) Reaps High Gains on Farmland Sales
Farmland Partners Inc. (FPI - Free Report) recently made headlines with its strategic asset dispositions, which resulted in an impressive 17% gain as well as an additional farm acquisition. These developments underscore the company's commitment to maximizing shareholder value while maintaining a diversified and sustainable farmland portfolio.
In its latest announcement, FPI detailed its significant accomplishments in the third quarter, including the sale of more than 13,500 acres spread across California, Colorado, Georgia, Illinois, Louisiana and Kansas and the acquisition of a 1,523-acre farm in Morehouse Parish, LA. The total sales amounted to more than $70 million, realizing a gain of approximately 17%, highlighting the robust performance of FPI's farmland assets.
Luca Fabbri, the president and CEO of FPI, expressed satisfaction with the results, stating, "We sold more than 30 farms this summer – many of which were in water challenged areas – and captured strong asset appreciation returns for our shareholders." He also stated that the proceeds from these sales are being used to generate value for shareholders through stock repurchases at a discount to their underlying value, lowering indebtedness as well as new acquisitions.
This indicates that FPI is not only thriving in the market but also demonstrating a shrewd strategy by divesting properties in less sustainable areas to reallocate resources where they can be better utilized.
The acquisition in Louisiana, a region already home to FPI farmland, further attests to the company's commitment to strategic growth. This 1,523-acre addition primarily focuses on corn and soybean production and was purchased for around $11 million. This move strengthens FPI's presence in a favorable location and complements its diverse crop portfolio.
What makes FPI particularly enticing to investors is its continuous commitment to enhancing shareholder value. Through September 2023, the company had successfully disposed of more than $120 million worth of farmland, yielding a gain of approximately $23 million. FPI's targeted asset sales for the year are projected to reach $170 million, reflecting its proactive approach to unlocking the full potential of its assets.
These positive results reflect FPI's commitment to maximizing shareholder value through strategic asset management. As the company continues to capitalize on the demand for good farmland, investors can look forward to further profitable outcomes.
Currently, Farmland Partners carries a Zacks Rank #3 (Hold). Over the past month, shares of the company have declined 1.4%, wider than its industry’s fall of 6.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Welltower (WELL - Free Report) and Americold Realty Trust (COLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 FFO per share has been raised marginally over the past month to $3.56.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been raised marginally over the past month to $1.29.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.