Vital Farmland REIT, LLC
United States of America
Last updated 11 May 2020, by Impactyield.
Farmland is historically a non-correlated, inflation-protected investment that generates appreciation and cash flow. The $2.5T market is only 1% institutionally owned and remains highly inefficient. Meanwhile, organic food production is unable to keep pace with consumer demand due to a dearth of organic farmland. This imbalance creates 50-200% price premiums for organic products.
Farmland LP capitalizes on these dynamic markets using sustainable farm management practices. We buy commodity farmland and add value by securing organic certification, investing in infrastructure, and increasing crop diversity. Our management increases the value of the land through stepped up appreciation and premium cash flows, while creating meaningful social and environmental benefits.
Vital Farmland REIT generates returns through appreciation and income from operations.
Key performance indicators
Asset manager: Farmland LP
Product track record: Fund has 8 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - post first close
Inception year: 2014
Vintage year: 2014
Target close date: 01/12/2017
Product term: 10 years + 2 optional 2-year extensions
Assets under management: 150,000,000 USD (US Dollar)
Investment size: Min: 500,000; Max: 30,000,000; Avg: 0
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 2
Fund investments to date exited or repaid: 0
Management fee: 1.75%
Carried interest: 20%
Hurdle rate: 5%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Endowments/Foundations, Family Office, Other Institutional Investors
Environmental and social impact is intrinsic to Vital Farmland REIT's investment strategy. Our sustainable farmland management practices include protecting natural areas and supporting ecosystem functions, restoring soil, conserving and protecting water, and conserving energy. Our management not only protects the environment and communities in which we operate, but benefits the health and wellness of those who consume our organic products near and far.