FirstFarms: purchases 1,010 hectares rent contracts and agricultural land

Billund / DK. (ff) FirstFarms A/S has entered an agreement (SPA) about purchase of land and rent contracts in Slovakia. FirstFarms purchases 70 hectares of land and takes over rent contracts for a further area of 940 hectares.

The price for the land and rent contracts is DKK 11.5 million, and a positive contribution to Ebit of DKK 2 million is expected with full effect from 2021.

Anders H. Nørgaard says: «Value increase of our land portfolio is a large part of our business model. With this purchase, we will create synergies with our current operating areas. FirstFarms has a unique knowledge about operation and development of land along with purchase, storage and sale of crops. With this agreement, we strengthen our platform further.»

Entering this agreement, FirstFarms operates 21,000 hectares, of which 10,000 hectares are owned.

At the end of 2019, FirstFarms has a booked land value of DKK 346 million with an assessed market price of DKK 615 million before tax. The expected added value of more than DKK 250 million is not included in the company’s booked equity.

The announced expectations to 2020 with an Ebitda result in the level of DKK 110 to 135 million and an Ebit result of DKK 60-85 million are maintained. In 2019, an Ebitda of DKK 96 million and an Ebit of DKK 48 million was realised.

FirstFarms is a public limited company which invests in agriculture and land in Eastern Europe. The company purchases and modernises farming companies and land in order to optimise their operation so future production of agricultural produce will be competitive in terms of price and quality. The company has been listed on Nasdaq Copenhagen since December 2006.