American Farmland Says It Will Commence A Review Of Strategic Alternatives, Shares Pop 7%

American Farmland Co AFCO, a real estate investment trust company that focuses on owning and acquiring a diversified portfolio of U.S. farmland, announced that its Board of Directors will begin a review of strategic alternatives to enhance shareholder value.

American Farmland noted that its stock has been trading at a substantial discount to its net asset value since its initial public offering on October 19, 2015. The company added that as of the end of 2015, its net asset value, based on third-party appraisals of its farms, was estimated to be $10.05 per share.

Shares of American Farmland were trading higher by more than 7 percent on Friday and traded above the $7.00 per share mark for the first time since early January. In fact, the stock has never traded above the $8.00 mark.

The company added that its board will evaluate joint venture arrangements, a merger, or sale of all or part of the company and/or its assets.

American Farmland added that there can be no assurances that any action will be taken and there is no definitive timetable for completion. The company also said it does not intend to disclose further developments until specific action has been approved or a review has been completed.