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Executive LettersIn The News

Third Quarter Insights From the Team at Sower

Robust Six Months for Sower with New Joint Ventures and Fund Closings

By Jared Hollinger, Sower Investment Partners | October 2024

Navigating Market Challenges and Capitalizing on Opportunity

At Sower, our mission is to deliver defensive returns while identifying and capitalizing on gaps in the market. In today’s ever-changing economic environment, alternative asset investors have a unique ability to uncover value where others may see obstacles. We believe that by remaining flexible and forward-thinking, we can meet unmet needs in the market while continuing to drive strong returns for our investors. 

Defensive Returns in a Volatile Market

In both our farmland and commercial investments, we have strategically deployed capital in areas that many overlook. By staying true to our research-driven approach and focusing on market voids, Sower has positioned itself to capture upside potential while mitigating downside risk. 

Farmland Investments: A Value-Driven Strategy in a Depressed Market

The agricultural sector has faced significant challenges in recent years, with falling farm incomes and a subdued production market. Yet, in these challenges, we’ve found opportunities. Sower’s Farmland Fund has developed a distinctive approach by utilizing sale-leaseback structures that enable farmers to maintain production while we acquire land below market value. This approach not only provides much-needed liquidity to the farming community but also allows us to acquire assets at a discount, setting the stage for long-term value creation. By aligning ourselves with farmers in mutually beneficial agreements, we ensure that productivity continues while generating solid returns for our investors. 

Commercial Investments: Thriving in Retail’s New Era

While many sponsors have turned away from retail assets, Sower Commercial has remained steadfast in its commitment to this space—and our conviction has paid off. We’ve seen growing demand for high-quality retail tenants who are eager for premier locations that can deliver both foot traffic and brand visibility. As a result, our partners at Access Commercial have successfully negotiated record-breaking rents in many recent transactions, ultimately setting up our investors for enhanced returns. 

Our ability to identify quality retail tenants, coupled with our deep understanding of evolving consumer behavior, has allowed us to outperform the broader market. We see this trend continuing as retailers look for well-located, high-quality spaces to meet their customers’ demands. 

Looking Ahead

Our investment strategies reflect our commitment to identifying market dislocations and executing disciplined investments to create value. Whether it’s finding opportunities in a challenging farmland environment or capitalizing on the evolving retail landscape, Sower remains focused on delivering consistent returns to our investors. We believe that the key to our success lies in our ability to see beyond the immediate challenges and to take advantage of the opportunities they present. 

I hope you enjoy the details herein on a few updates from each of our investment verticals. We’re always eager to share and just as eager for feedback from you. 

 All the best! 

Jared