Farmland Partners Inc and Ducks Unlimited (“DU”) last week completed the second stage of a three-part conservation transaction for an approximate total of 1,268 acres adjacent to the Great Dismal Swamp National Wildlife Refuge in Virginia.
The land resides in the Atlantic Flyway, one of four ancient pathways migratory birds use to travel from breeding grounds to wintering areas.
FPI, which purchased the land in 2015, announced earlier this year that it would sell the property in a staged deal to DU for habitat restoration and protection. The unique transaction structure offered by FPI provides DU time and flexibility to secure capital for the project.
“Thanks to conservation partners like Farmland Partners, important land will be restored to the iconic wetland it once was,” DU CEO Adam Putnam said. “By protecting this landscape, we are helping to ensure the wildlife corridor between the Great Dismal Swamp and Caviler Wildlife Management Area is available for generations to come.”
The sale of the first tract, consisting of approximately 231 acres, closed January 30, 2021. The second tract was sold on December 17 and includes approximately 625 acres. The final 412-acre tract is expected to close no later than November 30, 2023.
“This transaction is a source of pride for our company because it’s good for the environment and it’s good for our shareholders,” explained Paul Pittman, FPI’s Chairman and CEO. “We’ve enjoyed working with the Ducks Unlimited team to get the second phase of this deal across the finish line, and we look forward to continue working closely with them to preserve precious wildlife habitat.”
If the third closing occurs as expected, gross proceeds on all three tracts will total $8 million and should generate approximately $800,000 in gains relative to book value for the company. FPI will continue to receive rent for the final tract until it is sold. That sale is subject to customary due diligence and DU’s ability to raise the necessary funds.
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 and/or manages approximately 186,000 acres in 18 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and more than 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.