Farmland Partners Launches Strategic Partnership Targeting Farmland Investments in Qualified Opportunity Zones

DENVER, Jan. 21, 2021

"The relationship with the OZ Fund reflects a strategic initiative to use privately capitalized vehicles to increase our assets under management and generate fees-for-service without the need to raise equity capital at potentially dilutive prices," stated Paul Pittman, FPI's Chairman and CEO. "As the OZ Fund grows with new properties, our property management income will increase as well as the overall scale of the farmland that we manage. The transaction creates value for FPI shareholders by selling FPI land at a premium to book value while allowing us to retain management of the properties in exchange for management fees."

The property sale agreement provides for, among other things, FPI's potential sale of approximately $47 million and 6,500 acres across 12 farms. The first six farms are expected to close by March, but all closings are subject to customary conditions, including financing, and other contingencies. The OZ Fund is also targeting farmland owned by third parties and located in QOZs for potential acquisition. FPI has committed to fund 10% of the equity required to acquire farmland owned by third parties up to a maximum of $20 million in exchange for interests in the OZ Fund. FPI will serve as property manager for all farmland assets owned by the OZ Fund in exchange for property management fees.    

The OZ Fund was created to acquire, improve, and stimulate economic development of land located in QOZs. QOZs are certain economically distressed communities in the United States where new investments, under certain conditions, may be eligible for preferential tax treatment. The OZ Fund was founded and is controlled by Servant Financial, a Chicago-based investment management firm. 

"This is a win-win," commented John Heneghan, President of Servant Financial. "Promised Land Opportunity Zone Fund brings new sources of capital to farmland, increases economic capacity and productivity for farmers, and promotes employment across agricultural communities. We believe the OZ Fund offers economic, environmental, and social impacts that are compelling for investors. We are pleased to collaborate with Farmland Partners, the farmland industry's leading REIT, on our unique and innovative opportunity zone vehicle."

About Farmland Partners Inc.

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 155,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. Additional information: www.farmlandpartners.com or (720) 452-3100.