Benzinga | Dec 8, 2020 06:09AM EST

Farmland Partners Announces $10M Private Investment

DENVER, Dec. 8, 2020 /PRNewswire/ -- Farmland Partners Inc. (NYSE:FPI) (the "Company") today announced that real estate veteran Tom Heneghan has joined Farmland Partner's board of directors. An entity controlled by Mr. Heneghan has also entered into a stock purchase agreement to acquire 1,250,000 shares of the Company's common stock at $8.00 per share in a privately negotiated transaction for proceeds of $10 million.

Mr. Heneghan has more than 30 years of leadership experience in the real estate industry with a long track-record of identifying opportunities to institutionalize and scale various sectors, domestically and internationally. These sectors include manufactured home communities and RV resorts, single-family rental, telecommunications infrastructure, and e-commerce related warehouse and logistics.

Mr. Heneghan is currently the chief executive officer (CEO) of Equity International, a private equity firm focused primarily on investing in real estate and infrastructure operating companies outside the United States. Prior to taking the helm of Equity International in 2013, he served as CEO of Equity Lifestyle Properties (ELS), a leading owner of manufactured home and resort communities. From 1995 through 2013 Mr. Heneghan served in several other leadership roles at ELS. ELS has earned the distinction of being one of the best-performing REITs since its IPO in 1993. He continues to serve as the vice chairman of ELS.

Mr. Heneghan is also a senior managing director of Chai Trust Company LLC, which is the trustee of various trusts in which Sam Zell and his family are beneficiaries.

In addition, Mr. Heneghan is the founder of Madison Canal and related entities which serves as an asset manager for institutional investors that have invested more than $500 million in a single-family rental business, Home Partners of America (HPA), a private REIT. Today, HPA manages approximately 16,000 homes across the country. Mr. Heneghan serves on HPA's board of directors.

"Farmland is an underrepresented asset class among institutional owners of real estate, especially given its $2.5 trillion size," stated Mr. Heneghan. "Less than 5% of farms in the United States are owned by institutional investors. Farmland Partners' strong management team is well positioned to scale its platform."

"Tom's history of successfully institutionalizing and scaling real estate sectors is directly relevant to farmland," said the Company's Chairman and CEO, Paul Pittman. "We look forward to adding his strategic vision, investment and operations acumen, and vast network to our board."

Mr. Pittman added, "We believe the predictability and essential nature of farmland is compelling to investors, particularly given the current uncertainty surrounding other real estate asset classes. As previously discussed in our public announcements, we have a high degree of confidence in the value of our assets. We have demonstrated this belief by selling assets in recent quarters to repurchase our stock. In connection with Tom joining the board, he requested the ability to invest capital, showing his conviction in our business and confidence in our team."

"I am excited to join the board of directors and to invest capital at what I believe to be a substantial discount to fair value1. I look forward to working with Paul and his team to close this valuation gap and to successfully grow the business." said Mr. Heneghan.

This press release shall not be deemed an offer to sell or a solicitation of an offer to buy securities. The sale of common stock made pursuant to the Stock Purchase Agreement was effected pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D thereunder.