Fayetteville, Ark., June 03, 2024 (GLOBE NEWSWIRE) -- AcreTrader, the platform offering investors access to the farmland asset class, exited a Wabash County, Indiana corn and soybean row crop farm on behalf of Acretrader 143, LLC (Roann 192), resulting in an actual internal rate of return (IRR) of 16% to investors upon exit. This offering was funded on the AcreTrader platform in December 2020 and was sold in May 2024.
This exit yielded a return attributable to a competitive entry price with consideration to comparable sales for properties of similar size and quality in the same region, consistent management and improvement practices, and favorable market conditions for farmland investments. This exited offering was conducted by AcreTrader, Inc., the parent company to AcreTrader Financial, LLC (registered broker-dealer, member of FINRA|SIPC which was not involved in the offering). Acretrader Management, LLC is an affiliate of AcreTrader Financial, LLC that provides land management services.
“This successful exit in Wabash County, Indiana, demonstrates the potential capital appreciation and income for Class B farmland in highly competitive markets such as North Central Indiana. This marks Acretrader Management’s 13th full cycle farmland investment,” states AcreTrader Managing Director of Investments, Drew Lipke. "Our team constantly monitors sales activity and recent record-level nearby auctions prompted us to investigate a potential exit for this property. We remain committed to leveraging the Acres platform and our local acquisition network, to provide investors access to this vital asset class.”
The 192-acre farm was sold to a private buyer who approached AcreTrader with a competitive offer. This offering included the advantage of all 192 acres being tillable, complete with pattern tile draining into two main outlets in Wabash County, and the benefit of the adjacent farmer raising hogs, which provided the tenant with manure, assisting with overall farm fertility and decreasing nutrient costs.
Farmland investments have demonstrated resilience in the face of market volatility, delivering historically consistent returns during recent decades' economic downturns such as the Dotcom Crash, the Great Financial Crisis, and the Covid-19 pandemic. In addition to its historical investment performance and low volatility, farmland as an asset class’s performance has garnered increasing interest as an important aspect of a diversified portfolio.*
About AcreTrader
AcreTrader empowers customers to analyze land and invest with advanced technology, data, and expertise through its Acres platform. AcreTrader Financial, LLC, is a registered broker dealer, member FINRA/SIPC, offering access to farmland investing to accredited investors through its platform. For more information, including our terms of use, privacy policy, and risk factors, find out more by visiting acretrader.com.
Note that Investors in Acretrader 143, LLC purchased shares in an entity that purchased the farm but did not purchase actual acreage of the farm directly.
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. Investments are illiquid, not listed on an exchange, and not a short-term investment. 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. Farmland investments are also subject to additional risks including volatility in commodity prices, weather events or disease that could damage crops and many other operational factors.
This exited offering was not conducted by AcreTrader Financial, LLC, registered broker-dealer, member of FINRA|SIPC. The IRR calculation assumes 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 made the distributions to members. The actual IRR displayed is calculated using the following inputs: initial total equity raise is applied on the real estate purchase closing date, cash distributions made between the time the real estate purchase closed and the sale of the property using the dates each of those payments are initiated, and the amount of the final distribution, using the date such distribution is initiated. These calculations assume the final distribution is made i) after the SPV was dissolved and all outstanding fees and taxes were paid; and ii) 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.
*Source: NCREIF Farmland Index 1990-2022. Past performance does not guarantee future results and there is no guarantee this trend will continue. You cannot invest directly in an index.
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