Agcapita's Investment Thesis Confirmed by New Report

A newly released research report titled “Portfolio Construction Using Alternative Strategy Allocations in Farmland and Venture Capital” co-authored by Stephen Johnston, Barclay Laughland and Karim Kadry reviews the 15-year period from 2000 to 2014. It revealed that the addition of a venture capital allocation to a pure farmland portfolio would have improved the financial performance.

Calgary, Canada, October 25, 2017 --(PR.com)-- The findings of the report support Agcapita’s belief that farmland is a safe investment. According to the founder Stephen Johnston, “Agcapita is currently closing of its sixth farmland fund after almost a decade in the space and has over 70,000 acres in its portfolio.” Johnston believes the reason for Agcapita’s longevity is its risk reduction approach to farmland and a track record of successful exits. “Agcapita funds directly hold unlevered, diversified (operator, crop and geography) portfolios of farmland in the highly price competitive Canadian prairie provinces. Agcapita seeks to capture the returns from farmland investments in the most pure and non-volatile fashion – hence the lack of such volatility increasing features as crop sharing, input credit provisions, leverage etc. Agcapita also pursues a unique model of front-end loaded cash rents to intentionally strip out credit and operational volatility/risk from its portfolio. Agcapita’s strategy is to rely on the deep fundamental discounts in the western Canadian market to drive returns – returns which were over 15% IRR in the exits of Agcapita Fund I and Fund II and continue to be high in its unrealized portfolios.”

About Agcapita: Agcapita is one of Canada's most experienced farmland investors with a 10 year operating hisotry. Agcapita believes that farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Canadian farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Canadian farmland returns have exhibited low volatility and this combined with higher absolute returns equate to a favorable Sharpe ratio. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term.

This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should" "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Agcapita, if any, reflect Agcapita's beliefs and assumptions based on information available at the time the statements were made (including, without limitation, that (i) the demand for agricultural commodities will continue to grow at a pace that is unlikely to be matched by growth in agricultural productivity, and (ii) investment demand for tangible assets such as agricultural commodities and farmland will continue to increase for the foreseeable future). Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of farmland, including fluctuations in interest rates, rental rates and vacancy rates; general economic conditions; local real estate markets; supply and demand for farmland; competition for available farmland; weather; crop diseases; the price of grain and other agricultural commodities; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Agcapita's undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Contact
Agcapita Partners
Karim Kadry
+1-587-887-1541
www.agcapita.com
ContactContact
Categories