Damian Eales Chief Executive Officer | realtors.com
The Church of Jesus Christ of Latter-day Saints has expanded its agricultural footprint in the United States with a $289 million acquisition of 46 farms across eight states. The purchase was made through Farmland Reserve Inc., the church's real estate arm based in Utah, from Denver-based Farmland Partners Inc., a publicly traded real estate investment trust.
The transaction, expected to close on October 16, includes 41,554 acres spread across Arkansas, Florida, Nebraska, Mississippi, and the Carolinas. The sale price is nearly $7,000 per acre. Farmland Partners anticipates a gain of about $50 million from this deal, which is approximately 21% above the book value of these properties.
Farmland Partners plans to utilize the proceeds to reduce debt by around $140 million, repurchase stock and finance future acquisitions. A "significant special distribution" to shareholders by year-end is also being considered. Luca Fabbri, president and CEO of Farmland Partners, stated that the transaction aligns with their “total return” investment strategy focused on long-term asset appreciation.
“We have consistently advised shareholders that our company is undervalued due to lack of recognition by the market of the appreciation in our asset base,” Fabbri said. He noted that this deal supports their investment thesis focusing on returns not only from operational income but also land value increases.
Farmland Reserve already holds over 1 million acres in US agriculture, including significant holdings in Nebraska. Despite being somewhat enigmatic—it does not disclose land ownership details or provide contact information online—it is regarded as a responsible landowner within agricultural circles.
Fabbri praised Farmland Reserve for its ethical management and tenant relationships: “We are pleased to transition our long-standing tenant relationships to a high-quality institutional investor that values relationships as we do.” Doug Rose, CEO of Farmland Reserve, expressed gratitude for working with Farmland Partners: “We’re also gratified they saw us as the right buyer for these properties and the farmer tenant relationships that come with them.”
With a focus on maintaining agricultural productivity through local farmer leases, Farmland Reserve aims to continue its long-term investment philosophy. The company owns 145,000 acres and manages another 45,000 across 15 states since its IPO in 2014. Its portfolio includes diverse crops like corn and soybeans as well as California orchards.
For both companies involved in this transaction—the sale represents strategic moves towards unlocking hidden value and reinforcing positions within American agriculture.
According to The Flatwater Free Press earlier this year faced criticism after acquiring around 370,000 acres of prime ranch land in Nebraska now owning at least $2 billion worth of farmland nationwide—becoming potentially larger than CNN founder Ted Turner’s holdings there—and continues growing amid financial scrutiny including federal investigations lawsuits member concerns while reportedly controlling an expansive real estate empire spanning approximately 859 thousand acres outpacing even Bill Gates China combined some estimates suggest actual agricultural assets could reach up twelve billion dollars.
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