Farmland Companions Launches Strategic Partnership Targeting Farmland Investments in Experienced Chance Zones

DENVER, Jan. 21, 2021 /PRNewswire/ — Farmland Companions Inc. (NYSE: FPI) (the “Organization” or “FPI”) introduced right now that its formerly disclosed negotiations relating to an prospect zone fund have resulted in the signing of a home sale and prolonged-expression management agreements with Promised Land Prospect Zone Farms I, LLC (“OZ Fund”), a non-public expense fund concentrated on acquiring and enhancing farmland in experienced prospect zones in the United States (“QOZs”), as designated below U.S. tax provisions enacted in 2017. FPI will provide in a residence management capability for the OZ Fund and will have the capacity to receive equity pursuits in the OZ Fund. The Corporation will also have a right of 1st supply to invest in qualities owned by the OZ Fund. 

“The marriage with the OZ Fund reflects a strategic initiative to use privately capitalized motor vehicles to increase our assets beneath administration and produce service fees-for-company with out the will need to increase fairness funds at probably dilutive selling prices,” said Paul Pittman, FPI’s Chairman and CEO. “As the OZ Fund grows with new attributes, our assets administration income will improve as perfectly as the all round scale of the farmland that we control. The transaction generates value for FPI shareholders by providing FPI land at a high quality to guide benefit while allowing for us to keep administration of the attributes in trade for management fees.”

The home sale settlement presents for, amongst other things, FPI’s likely sale of approximately $47 million and 6,500 acres across 12 farms. The very first 6 farms are anticipated to shut by March, but all closings are subject matter to customary conditions, including financing, and other contingencies. The OZ Fund is also concentrating on farmland owned by 3rd events and positioned in QOZs for likely acquisition. FPI has dedicated to fund 10% of the fairness demanded to acquire farmland owned by third parties up to a greatest of $20 million in exchange for passions in the OZ Fund. FPI will provide as assets manager for all farmland belongings owned by the OZ Fund in exchange for home administration costs.    

The OZ Fund was produced to receive, improve, and promote financial growth of land situated in QOZs. QOZs are selected economically distressed communities in the United States the place new investments, less than sure ailments, may perhaps be qualified for preferential tax treatment method. The OZ Fund was established and is managed by Servant Monetary, a Chicago-based financial commitment administration organization. 

“This is a earn-gain,” commented John Heneghan, President of Servant Economic. “Promised Land Opportunity Zone Fund provides new resources of capital to farmland, increases economic capacity and productiveness for farmers, and encourages employment throughout agricultural communities. We think the OZ Fund features economic, environmental, and social impacts that are persuasive for traders. We are delighted to collaborate with Farmland Partners, the farmland industry’s top REIT, on our special and ground breaking prospect zone car.”

About Farmland Partners Inc.

Farmland Companions Inc. is an internally managed real estate company that owns and seeks to get high-high-quality North American farmland and will make financial loans to farmers secured by farm genuine estate. As of the day of this launch, the Organization owns about 155,000 acres in 16 states, which include Alabama, Arkansas, California, Colorado, Florida, Ga, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have close to 26 crop kinds and more than 100 tenants. The Corporation elected to be taxed as a serious estate financial commitment belief, or REIT, for U.S. federal money tax uses, commencing with the taxable 12 months ended December 31, 2014. Additional details: or (720) 452-3100.

About Servant Fiscal

Servant Monetary, Ltd. is a Chicago-based expense administration company established in 2003. The business serves the diverse investment decision, chance administration, and finance wants of people today, substantial web well worth purchasers and family members places of work. Servant Money focuses on alternative investments – non-public equity and hedge money, ETFs, and socially liable investments. Additional data: or (630) 264-0127.

Ahead-Looking Statements

This push release features “ahead-looking statements” within the meaning of the federal securities legal guidelines, like, with no limitation, statements about the transaction, the anticipated timeline for closing, the Company’s potential to promote added houses to the OZ Fund, the expected gross proceeds from the income to the OZ Fund, the anticipated managements service fees to be acquired by FPI, and the ability of the OZ Fund to obtain further farmland homes. Ahead-looking statements generally can be determined by the use of ahead-on the lookout terminology these types of as “may,” “ought to,” “could,” “would,” “predicts,” “likely,” “carry on,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” or very similar expressions or their negatives, as properly as statements in upcoming tense. Although the Firm thinks that the anticipations reflected in these kinds of forward-looking statements are primarily based upon sensible assumptions, beliefs and expectations, this sort of forward-wanting statements are not predictions of long run occasions or ensures of long term effectiveness and our real benefits could differ materially from those people established forth in the ahead-searching statements. Some elements that may possibly induce these a big difference consist of the capacity to consummate the transaction described higher than, fulfillment of experienced option zone regulations as established by OZ Fund 3rd-celebration advisors, and the typical economic ailments. Any ahead-wanting facts introduced herein is produced only as of the day of this push release, and the Business does not undertake any obligation to update or revise any forward-hunting information and facts to reflect improvements in assumptions, the occurrence of unanticipated occasions, or normally.

Resource Farmland Partners Inc.

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