Farmland Partners Inc. (FPI) - REIT

Farmland Partners Inc. is an internally managed, publicly traded (NYSE: FPI) real estate company that owns and seeks to acquire high-quality farmland throughout North America addressing the global demand for food, feed, fiber, and fuel.

~500 Mn
Market Cap
1.48% trailing and 1.52%
Annual dividend yield
156,500 acres
Area owned
$ 1.1Bn
Area Base
Macro View - Comparison

Real Assets Vs Financial Assets

Financial assets include things like stocks, bonds and cash. Real assets include things like real estate, infrastructure and commodities. Financial assets offer the advantage of convenience, liquidity, and efficiency whereas real assets are safer in that they do not rely on a public marketplace to derive value for the owner while also being more inflation and " black-swan event" resistant.

Retirement pensions & endowment funds - which have the mandate of generating highly reliable and regular income for distribution - are no longer able to achieve their investing goals by focusing solely on bonds (LQD, VCLT, IEF) after a multi-decade-long decline in interest rates and are instead looking to real assets to meet their needs. Already, trillions of dollars have flown to real assets and the trend appears to be just getting started.

Allocations to real assets were only 5% in 2000.

Today, it's closer to 25%. And in 10 years, this figure could reach up to 40%

Equity Trading

Inflation in Soft commodities has been followed by money moving out of financial economy to real economy as demonstrated by the last commodity inflation cycle of 2007 - 2013.

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What are the Potential Risks?
  • Change in Demand supply dynamics
  • Higher Interest rates
  • Depletion in value of USD
  • Weather condition & Corp diseases
  • Fluctuatrions in foreign trade & export policies
  • Non Linear returns
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