Investor Presentaiton
Why U.S. Farmland?
1. Rising Demand + Shrinking Supply
Food consumption is one of the most basic human needs
Increases with GDP per capita (higher protein diets)
Increases with population
Large unmet demand: According to the UN Food and Agriculture
Organization, in 2021, an estimated 29.3% of the global population -
2.3 billion people were moderately or severely food insecure (1)
In contrast to traditional real estate sectors that experience
consistent supply growth, agriculture land per capita consistently
decreases
°
°
Farmland converted to alternative uses (e.g., residential, solar)
Water scarcity
3. Unique Attributes vs. Traditional RE (2)
Low risk of obsolescence
°
Traditional real estate may suffer from tenants' demand for
newer assets or amenities
°
°
FARMLAND
PARTNERS
2. Stable + Steady Returns(2)
Farmland historically has delivered attractive returns over long
holding periods
Appreciation + income
Farmland experiences low volatility through cycles
High Sharpe ratio compared to S&P 500, bonds, NAREIT major sector
average
Low correlation with other asset classes
Performs well in inflationary environments
4. Untapped Institutional Potential (2)
Farmland is one of the largest commercial real estate sectors, ~$3.4
trillion (3), with the lowest institutional ownership
U.S. Real Estate Estimated Sector Size & Public Ownership
⚫Public Ownership as % of Total Value
Total Value of Sector
Lower fungibility risk
°
Traditional real estate may be exposed to changes in demand
that are so severe that buildings become unusable over time
(e.g., empty office buildings, shopping malls)
Lower capital expenditure burden
°
Traditional real estate assets depreciate over time, requiring
constant reinvestment to maintain competitive positioning
Most farmland becomes more productive over time
Please see p. 28 for end notes.
$2.0-$3.0 Tn
5%
$1.0-$2.0 Tn
<$1.0 Tn
15%
10%
10%
10%
10%
5%
<1%
Farmand Apartment Net Lease Industrial
80%
Office
Strip Center Lodging
Senior
Housing
Malls
FPI
4
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