Fayetteville, Ark., Nov. 14, 2024 (GLOBE NEWSWIRE) — The AcreTrader Platform, offering investors access to farmland investments, has successfully exited a 169.3-acre corn and soybean farm located in Huntington County, Indiana, in the Wabash River Valley on behalf of Acretrader 133, LLC. The farm, consisting of 166 tillable acres, was fully subscribed on the platform in November 2020 and has delivered a net internal rate of return (IRR) of 18% to investors. The real estate closing happened in July 2024, with a total net cash return of $2.4 million to investors.
The corn and soybean yields on this farm outperformed both county and state averages under Acretrader Management’s (ATM) oversight. According to Acres.com, the North Central Indiana farmland market has seen strong price appreciation at an annualized rate of 6.5% since the end of 2020. In comparison, this property achieved a 21% annualized appreciation, underscoring ATM’s strategy of identifying opportunities to acquire farms below market value and exiting when the right opportunities arise. In this case, the strength of Wabash River Valley farmland led to a motivated buyer, which created opportunity for investors in Acretrader 133, LLC. Minor tile ditch repairs were made during the investment holding period, but no major capital expenditures were required.
“This is the 15th full-cycle investment where the Company and the underlying farmland were managed by ATM. These exits have returned over $25 million to investors in the form of full return of principal, capital appreciation, and lease income,” said Drew Lipke, AcreTrader Managing Director of Investments.
Farmland investments have historically shown resilience during periods of market volatility, often providing stable returns, including during significant economic events such as the Dotcom Crash, the Great Financial Crisis, and the Covid-19 pandemic. While past performance is not indicative of future results, farmland may be considered a potential component of a diversified portfolio.* ATM remains committed to striving to create value for its investors.
About AcreTrader
AcreTrader empowers customers to analyze land and invest with advanced technology, data, and expertise through its use of the Acres.com platform. For more information, including our terms of use, privacy policy, and risk factors, find out more by visiting acretrader.com.
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Note that Investors in Acretrader 133, 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.
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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