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Central IL | I believe their debt would be mostly bonds which require interest only payments until maturity. New bonds are then often sold to pay off principle as long as the other financials are sound. And yes, they are counting on land appreciation. Think of them as TIPs or Inflation Protected Securities similar to the ones the government sells. Investors should receive approximately 3% interest as well as inflation protected principle theoretically about the same as owning farm ground in my local area. Problem in my mind is the debt and my lack of trust in the shenanigans the majority owners may be pulling. As a farmer I'd much rather own the actual land than their stock. | |
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Farmland Partners "FPI"
