Farmland Partners Inc. Announces Agreement for Acquisition of Burlington, Colorado-Based Farm for $8.75M

Farmland Partners Inc. FPI (the "Company") today announced that it has entered into purchase agreements to acquire an approximately 3,696-acre row crop farm for approximately $8.75 million. The Burlington, Colorado-based farm is located primarily in eastern Colorado, with a small portion of the acres immediately across the border in western Kansas. The Company intends to sign a three-year lease with the seller at an anticipated unlevered annual cash return of approximately 4.63%. The acquisition, which is subject to customary closing conditions, is expected to close no later than May 30, 2014. The Company intends to obtain mortgage financing on the farm at or subsequent to closing in an amount representing approximately 40-50% of the purchase price. "We are excited to announce this sale-and-leaseback transaction with a very successful Burlington-based farm family. We think this is the first of several high-quality farmland investments we intend to make in the coming months," said Paul Pittman, CEO of Farmland Partners Inc. "Once this acquisition closes, Farmland Partners' portfolio will consist of over 11,000 acres of row crop farmland, addressing the increasing global grain demand."