Fayetteville, Ark., Dec. 21, 2022 (GLOBE NEWSWIRE) -- AcreTrader, the land investment platform at the intersection of agriculture, tech and finance, last week announced over 5,600 distributions to investors.
Over 90% of the company’s active investment properties generated a distribution this year that was greater than or equal to what was anticipated by AcreTrader’s internal models, indicating the resiliency of the asset class against significant economic headwinds.
Land investments generate returns in two ways: appreciation over time plus possible income from agricultural production or timber harvest on the land. Annual income, when available, is distributed to investors in each property proportionally to their ownership percentage, while appreciation is typically captured upon exit, or sale, of the asset.
Since its founding in 2018, 124 land investments have been funded on the AcreTrader platform. To date, five of those farms have been sold, otherwise known as “exited.” Each of the five farm exits as of year end 2022 have generated final IRRs above 10% and above initial projections.
“We are pleased that so many of our investors are seeing positive returns in a year of turbulent markets. We’re also happy to see our farming partners experiencing success on their farms. Our ideal investment scenario is one in which both farmers and investors win, and this year’s successful round of distributions has shown that to be the case,” said Michael Iseman, AcreTrader Director of Operations.
About AcreTrader
AcreTrader 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 buy, sell, and invest in land for thousands of investors, farmers, and landowners across the U.S. Find out more by visiting acretrader.com and explore current offerings at acretrader.com/explore.
*Supplemental Information: 1) The calculations for the final IRR reported above assumed that the start date of the investment was on the closing date for the land acquisition and the end date was the date the distribution of net proceeds from the real estate sale was initiated to Members. 2) A portion of the total sale proceeds was in each case withheld to pay taxes and fees required to dissolve the Company. If any funds remain in the Company’s bank account after all taxes and fees were paid, each investor in the Company received his/her/its pro rata portion in a final distribution. 3) Final IRR calculations were made after the Company was dissolved and all outstanding fees and taxes were paid. 4) Note that stated IRR rates were calculated solely at the entity level and may not be reflective of any specific investor's specific IRR which may differ based on factors specific to each such investor. 5) The information provided herein is not intended as investment advice. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms of use.
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