AcreTrader’s Latest Farmland Disposition Exceeds Target Returns
The farm has Class A soils and was highly improved prior to its acquisition by AcreTrader.
Fayetteville, Ark., Aug. 15, 2023 (GLOBE NEWSWIRE) -- AcreTrader, the land investment platform at the intersection of agriculture, tech, and finance, recently added another successful farm disposition with the sale of a Quitman County, Mississippi farm. Funded on the AcreTrader platform in June 2020 and sold in June 2023, the investment resulted in a net IRR of approximately 15.8%*, exceeding the initial target return of 8.5%*.
The 236-acre property is located within the Mississippi River Delta, known for its strong groundwater resources. The farm has Class A soils and was highly improved prior to its acquisition by AcreTrader. Precision leveling served to transition the ground from primarily soybean to primarily rice production. Properties suitable for growing rice, a higher-value crop, can command higher lease rates in the region. Additionally, two duck blinds were purchased by AcreTrader Management, LLC on behalf of investors for waterfowl hunting, which yielded additional income. This exit provided a return well beyond the expected targets to AcreTrader investors due to market conditions and demand in the area.
This exit follows five previous fully completed internal deal investments that were managed by AcreTrader Management, LLC in the past year with higher-than-expected returns attributing farmland appreciation as the largest driver. To learn more about previous dispositions, please visit https://acretrader.com/investments/primary-offerings.
Farmland investments have shown resistance to market volatility, with returns remaining positive during economic downturns of recent decades, including the Dotcom Crash, the Great Financial Crisis, and the Covid-19 pandemic. Alongside a historical correlation with inflation and lower volatility than commercial real estate, farmland’s performance has received growing attention as an alternative investment.
“It is encouraging to witness this kind of performance amid today’s uncertainty. Our hope is that farmland can continue to serve investors as the portfolio diversifier it’s historically been. It’s a powerful resource in more ways than one, and we work hard to steward land responsibly with our farming partners, as well as our investors’ interests in it,” said AcreTrader Founder and CEO Carter Malloy.
About AcreTrader
AcreTrader is a land investment and technology company that empowers its customers to buy and sell land smarter through advanced technology, data, and expertise. Since its founding in 2018, AcreTrader has broadened access to research, buy, sell and invest in land for thousands of investors, farmers and landowners across the US and Australia. AcreTrader Financial, LLC, is a registered broker-dealer, member FINRA/SIPC offering access to farm and timberland investments to accredited investors through its platform.
Securities offered through AcreTrader Financial, LLC, member FINRA/SIPC.
Alternative investments are considered speculative, involve a high degree of risk, including complete loss of principal and are not suitable for all investors. Learn more about the risks of investing in farmland and the nature of the asset class by looking at our general risk factors. Past performance does not guarantee future results. The above content is not intended to be a comparison between products, but is intended for general, educational and informational purposes only. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with your financial or tax professional.These exited offerings were not conducted by AcreTrader Financial, LLC, registered broker-dealer, member of FINRA|SIPC.
The realized IRR calculations displayed above assume the start date of the investment was on the closing date for the land acquisition and all other cash flows were recognized on the date Acretrader Management, LLC initiated the distributions to members. Calculations were i) made after the SPV was dissolved and all outstanding fees and taxes were paid; and ii) made solely at the entity level and may not be reflective of any investor's specific IRR which may differ based on factors specific to each such investor. Any hold period generally represents the time between the closing date for the land acquisition and the date the land was sold. Note that the information above is not intended as investment advice, nor is it a guarantee of any future performance or results.
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Mary Mickel AcreTrader 479.202.6167 [email protected]