Core Viewpoint - Farmland Partners Inc. reported a strong performance for the fourth quarter and full year of 2025, highlighting significant increases in adjusted funds from operations (AFFO) and a 50% increase in dividends, driven by disciplined cost control and strategic asset management [4][10][11]. Financial Performance - Net income for 2025 was $32.2 million, with $21.8 million for the fourth quarter, translating to $0.65 and $0.49 per share for the respective periods, which is lower than 2024 [11]. - AFFO reached $17.9 million for 2025, with $11.4 million for the quarter, or $0.39 and $0.26 per share, showing an increase compared to the previous year [11]. - Total operating revenues declined by approximately $6 million, primarily due to asset dispositions, but were partially offset by increased variable rents and interest income [12]. Strategic Initiatives - The company successfully simplified its business by selling its brokerage and auction asset management subsidiary, which helped strengthen its balance sheet and liquidity [7][8]. - The repayment of Series A equity was completed in February 2026, enhancing shareholder value by reducing senior claims to common shareholders [4][7]. Outlook for 2026 - The company anticipates a strong outlook for 2026, with forecasted net income ranging from $8.8 million to $10.9 million and AFFO between $14.4 million and $16.4 million, or $0.33 to $0.37 per share [15]. - Fixed farm, solar, wind, and recreation rents are expected to reflect the full-year impact of 2025 dispositions, while variable payment crop sales are projected to decrease [15]. Dividend Policy - The dividend was increased by 50% to $0.09 per share per quarter, reflecting confidence in cash flow expectations rather than relying on asset sales [10][31]. - The company aims to maintain a sustainable dividend policy, avoiding dependence on unpredictable asset sales for regular dividends [31]. Market Conditions - The agricultural market remains uncertain, particularly regarding crop yields and pricing, leading to a cautious approach in forecasting performance for 2026 [9][10]. - The company is focused on achieving fair prices for asset dispositions, particularly in California, where the market has recently opened up again [21].

Financial Performance - Farmland Partners reported an EPS of $0.43 for the quarter, exceeding the consensus estimate of $0.20 by $0.23 [1] - The company achieved a net margin of 60.46% and a return on equity of 6.65% [1] - Revenue for the quarter was $20.72 million, surpassing analysts' expectations of $17.14 million [1] - The FY 2026 guidance is set at an EPS range of $0.330 to $0.370 [1] Dividend Information - Farmland Partners announced a quarterly dividend of $0.09, to be paid on April 15th, with a record date of April 1st [2] - This dividend represents an annualized amount of $0.36 and a yield of 3.0%, an increase from the previous quarterly dividend of $0.06 [2] - The current payout ratio stands at 20.00% [2] Insider Trading - Director John A. Good purchased 3,000 shares at an average cost of $10.20 per share, totaling $30,600 [4] - This transaction increased the director's position by 24.79%, bringing their total ownership to 15,100 shares valued at $154,020 [4] - Corporate insiders currently own 8.30% of the stock [4] Institutional Trading - Jupiter Asset Management Ltd. acquired a new position worth $3,525,000 in Farmland Partners during the 3rd quarter [5] - Marshall Wace LLP increased its holdings by 181.0% in the 4th quarter, now owning 443,151 shares valued at $4,294,000 [5] - Institutional investors and hedge funds collectively own 58.00% of the stock [5] Stock Performance - Farmland Partners shares experienced a trading volume of 1,467,494, a 159% increase from the previous session [6] - The stock last traded at $12.0540, up from a previous close of $11.68 [6] - The company's market capitalization is $513.54 million, with a price-to-earnings ratio of 19.86 [7] Company Overview - Farmland Partners Inc. is a real estate investment trust (REIT) focused on acquiring and managing high-quality farmland in the U.S. [8] - The company aims to generate stable cash rents and long-term capital appreciation through leasing agricultural land [8] - Founded in 2013 and headquartered in Scottsdale, Arizona, Farmland Partners went public in June 2017 [9]

Financial Performance - Net income decreased 47.6% from $61.5 million for the year ended December 31, 2024 to $32.2 million for the year ended December 31, 2025[22] - Adjusted Funds from Operation (AFFO) increased 27% from $14.1 million for the year ended December 31, 2024 to $17.9 million for the year ended December 31, 2025; AFFO per weighted average common share increased 34.5% from $0.29 per share to $0.39 per share[22] - Total indebtedness decreased by $43.0 million from $204.6 million at December 31, 2024 to $161.6 million at December 31, 2025[22] Property Transactions - Completed dispositions of 60 properties for aggregate consideration of $90.2 million, recognizing a net gain on sale of $34.9 million[22] - Completed acquisitions of six properties in the Corn Belt region for total consideration of $7.3 million[22] - The company completed dispositions of 60 properties for a total consideration of $90.2 million, recognizing a net gain of $34.9 million during the year ended December 31, 2025[49] - The company acquired six properties in the Corn Belt region for an aggregate cash consideration of $7.3 million[51] Land and Crop Management - Owned farms with an aggregate of approximately 71,600 acres across multiple states, with 60% of the portfolio used for primary crops and 40% for specialty crops[16] - As of December 31, 2025, the company owned approximately 71,600 acres of farmland across multiple states, including Arkansas, California, and Texas[49] - Approximately 60% of the company's portfolio is comprised of properties used to grow primary crops such as corn, soybeans, wheat, rice, and cotton, which subjects the company to risks associated with these crops[95] - By value, approximately 40% of the company's portfolio is used for permanent crops, which have a higher risk profile compared to annual row crops[96] Revenue and Rental Income - The principal source of revenue is rent from tenants, with a mix of fixed and variable rents to mitigate credit-risk exposure[20] - The company expects rental income to increase over time, primarily through short-term leases[33] - The company recognizes a significant portion of rental revenue in the first and fourth quarters due to the seasonal nature of agriculture, with revenue in these quarters being meaningfully higher than in the second and third quarters[48] Financial Obligations and Risks - As of December 31, 2025, the company had approximately $161.6 million of outstanding indebtedness, primarily secured by mortgages on its farms[82] - The company’s debt agreements contain customary events of default, which could materially and adversely affect its financial condition if triggered[83] - As of December 31, 2025, $67.8 million of the company's outstanding indebtedness was subject to interest rates that reset periodically, with $26.2 million resetting in 2026[86] - The company is exposed to risks from global economic conditions, including elevated inflation and supply chain disruptions, which could adversely affect its operations and those of its tenants[89] Tenant and Market Risks - The company is subject to tenant credit risk, as certain leases do not require full payment of rent in cash in advance, exposing the company to potential defaults[101] - The company’s short-term leases make it more susceptible to decreases in prevailing market rental rates, which could adversely affect financial results[102] - The company’s tenants' profitability is crucial for its cash flow, and downturns in farming operations could materially affect rent collection[79] - Adverse weather conditions, seasonal variability, and crop diseases may significantly impact the company's revenues and tenants' ability to pay rent[113] Regulatory and Compliance Issues - The company is subject to various agricultural regulations, including those governing water usage and chemical applications, which may impact its operations[55][59] - The company is committed to ensuring compliance with labor and environmental regulations among its tenants, supporting human rights and fostering a positive company culture[65] Strategic Focus and Growth - The company intends to focus on acquiring high-quality farmland with average or better-than-average soil quality, water availability, and access to markets[42][45] - The company’s ability to expand through farmland acquisitions is critical to its growth strategy, but competition for suitable properties may increase prices and limit opportunities[98] Cybersecurity and Operational Risks - Cybersecurity risks have increased due to new technologies and sophisticated cyber-attacks, potentially impacting the company's operations and financial condition[132] - The company has experienced past cyberattacks, and while none were material, it anticipates future incidents that could disrupt operations and lead to financial losses[133] - The company employs tools to identify and mitigate cybersecurity threats, including firewalls and intrusion detection systems[194] Legal and Litigation Matters - The company filed a complaint against Sabrepoint on July 2, 2021, alleging involvement in a "short and distort scheme" that artificially lowered the company's stock price[129] - The company may incur significant unrecoverable costs if unsuccessful in the litigation against Sabrepoint, which could materially affect its business and financial condition[131] REIT Compliance and Shareholder Matters - To maintain qualification as a REIT, the company must distribute at least 90% of its REIT taxable income each year[167] - Failure to maintain REIT qualification could subject the company to U.S. federal income tax at regular corporate rates, significantly reducing distributions to stockholders[165] - The company may need to borrow funds or sell assets to meet distribution requirements to maintain REIT status[167] - The company’s charter restricts ownership of its stock to maintain REIT qualification, limiting market activity and business combinations[175]

Financial Data and Key Metrics Changes - Net income for 2025 was $32.2 million, with a quarterly net income of $21.8 million, translating to $0.65 and $0.49 per share, respectively, which is lower than the same periods in 2024 [11] - AFFO for 2025 was $17.9 million, with a quarterly AFFO of $11.4 million, or $0.39 and $0.26 per weighted average share, respectively, which was higher than the same periods in 2024 [11] - Total operating revenues declined by approximately $6 million, primarily due to dispositions in 2024 and 2025, partially offset by increased variable rents and interest income [12] Business Line Data and Key Metrics Changes - The company sold its brokerage and auction subsidiary, MWA, to Peoples Company, which simplified the business while maintaining market intelligence [8] - The increase in AFFO was driven by higher activity under the FPI loan program, lower interest expenses from reduced debt, and overall lower operating expenses [14] Market Data and Key Metrics Changes - The company expects to continue making marginal improvements to its portfolio in 2026, with a focus on California, contingent on fair pricing reflecting intrinsic asset value [10] - The California market is now open for transactions, although pricing remains low, and the company plans to gradually liquidate less favorable properties [27] Company Strategy and Development Direction - The company has increased its dividend by 50% to $0.09 per share per quarter, driven by disciplined cost control and strategic asset management [5][10] - The management emphasizes creating shareholder value through both dispositions and growth, rather than pursuing growth for its own sake [47] Management Comments on Operating Environment and Future Outlook - Management remains cautious about the agricultural business due to inherent uncertainties until harvest and sales occur [9] - The forecasted net income range for 2026 is $8.8 million to $10.9 million, with forecasted AFFO ranging from $14.4 million to $16.4 million [15][16] Other Important Information - The company has undrawn capacity on lines of credit of approximately $164 million at the end of December 2025, reduced to approximately $111.7 million as of the call date [14] - The company successfully amended its Farmer Mac facility, increasing its size from $75 million to $89.6 million [15] Q&A Session Summary Question: What are the drivers behind the change in variable rent versus 2025? - Management indicated that both asset dispositions and a cautious approach to forecasting variable payments contributed to the change, with the majority of the decline related to dispositions [19][21] Question: How much of the G&A decline is due to Murray Wise and other efficiencies? - Management confirmed that the significant reduction in G&A costs is primarily due to the sale of Murray Wise, along with other cost reductions [25][26] Question: What is the outlook for dispositions, particularly in California? - Management stated that all portfolio assets are saleable, with a focus on gradually liquidating less favorable properties in California while maintaining high-quality assets [27][29] Question: What is the status of the FPI loan program and its demand? - Management noted strong demand for the loan program, which is countercyclical, and expressed a willingness to extend loans as long as collateral remains solid [35][36] Question: How will disposition proceeds be used going forward? - Management indicated that share repurchases may decline as stock prices appreciate, and regular dividends will be driven by cash flow expectations rather than asset sales [50][51]

Financial Data and Key Metrics Changes - Net income for 2025 was $32.2 million, with a quarterly net income of $21.8 million, translating to $0.65 and $0.49 per share, respectively, which is lower than the same periods in 2024 [12] - AFFO for 2025 was $17.9 million, with a quarterly AFFO of $11.4 million, or $0.39 and $0.26 per weighted average share, respectively, which was higher than the same periods in 2024 [12] - Total operating revenues declined by approximately $6 million, primarily due to asset dispositions in 2024 and 2025, partially offset by increased variable rents and interest income [13] Business Line Data and Key Metrics Changes - The company sold its brokerage and asset management subsidiary, MWA, to streamline operations while maintaining a working relationship with the buyer [9] - The increase in AFFO was driven by higher activity under the FPI loan program, lower interest expenses from reduced debt, and overall lower operating expenses [14] Market Data and Key Metrics Changes - The company expects to continue making marginal improvements to its portfolio in 2026, with a focus on California, contingent on fair pricing reflecting intrinsic asset value [11] - The market for California assets is now open again, although pricing remains low, and the company plans to gradually liquidate less desirable properties [30] Company Strategy and Development Direction - The company has simplified its business model and reduced debt, which has allowed for a 50% increase in dividends [5] - The focus is on creating shareholder value through disciplined asset management rather than growth for growth's sake [49] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the agricultural business due to inherent uncertainties until harvest [10] - The forecast for 2026 includes a projected net income range of $8.8 million to $10.9 million and an AFFO range of $14.4 million to $16.4 million [16] Other Important Information - The company has undrawn capacity on lines of credit of approximately $164 million at the end of December 2025, which has since decreased to approximately $111.7 million [14] - The company successfully amended its Farmer Mac facility, increasing its size from $75 million to $89.6 million [15] Q&A Session Summary Question: Guidance on variable rent changes - Management indicated that the decline in variable payments is due to both asset dispositions and a cautious approach to forecasting performance in 2026 [21][22] Question: Year-over-year decline in G&A expenses - A significant portion of the decline in G&A costs is attributed to the sale of Murray Wise, along with other cost reductions [27][28] Question: Disposition strategy and market conditions - Management stated that all portfolio assets are saleable, with a focus on achieving the best prices under current market conditions, particularly in California [29][30] Question: FPI loan program demand - The loan program is experiencing strong demand, with management willing to extend loans as long as collateral remains solid [38] Question: Impact of lease transitions on variable payments - The transition of a lease from fixed to variable was not significant to the P&L [40][43] Question: Anticipated pricing for refinancing term loans - Management expects the refinancing to occur around the 5.3% range, in line with current market conditions [46][48] Question: Capital recycling strategy and share repurchases - Management indicated that share repurchases may decline as stock prices appreciate, with dividend increases driven by cash flow expectations rather than asset sales [53][54]

Q4 2025 Supplemental Package Farmland Partners Inc. (NYSE: FPI) is an internally managed real estate company that owns and seeks to acquire high-quality farmland throughout North America addressing the global demand for food, feed, fiber and fuel. www.farmlandpartners.com | 4600 S Syracuse St Suite #1450 Denver CO 80237 | 720.452.3100 Selected Highlights For the year ended December 31, 2025, the Company: Subsequent to December 31, 2025, the Company: CEO Comments Table of Contents | Earnings Release | 1 | | ...

Core Insights - Farmland Partners (FPI) reported quarterly funds from operations (FFO) of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and up from $0.19 per share a year ago [1] - The company achieved an FFO surprise of +19.05% for the quarter, having previously exceeded expectations in two of the last four quarters [2] - Revenues for the quarter were $20.72 million, surpassing the Zacks Consensus Estimate by 23.01%, although down from $21.47 million year-over-year [3] Financial Performance - The FFO for the previous quarter was initially expected to be $0.06 per share, but the actual result was $0.07, resulting in a surprise of +16.67% [2] - Over the last four quarters, Farmland Partners has consistently topped consensus revenue estimates [3] Market Performance - Farmland Partners shares have increased approximately 23% since the beginning of the year, contrasting with the S&P 500's zero return [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.02 on revenues of $7.08 million, and for the current fiscal year, it is $0.27 on revenues of $37.88 million [8] - The estimate revisions trend for Farmland Partners was mixed ahead of the earnings release, which may change following the recent report [7] Industry Context - The REIT and Equity Trust - Other industry, to which Farmland Partners belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [9] - Another company in the same industry, Gladstone Land (LAND), is expected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of +233.3% [10]

Financial Performance - For the year ended December 31, 2025, the company recorded net income of $32.2 million, or $0.65 per share, a decrease of 47.6% compared to $61.5 million, or $1.19 per share in 2024[3] - Total operating revenues decreased by 10.4% to $52.2 million in 2025 from $58.2 million in 2024[5] - Net income attributable to the Company was $31,545,000 in 2025, down from $59,911,000 in 2024, representing a decrease of about 47.4%[19] - Rental income fell to $35,929,000 in 2025, compared to $47,119,000 in 2024, a decrease of approximately 23.7%[19] - Adjusted EBITDAre for 2025 was reported at $30,067,000, down from $35,882,000 in 2024, a decrease of approximately 16.1%[22] Capital Management - The company decreased total indebtedness by $43.0 million, from $204.6 million at December 31, 2024, to $161.6 million at December 31, 2025[3] - The company completed dispositions of 60 properties for approximately $90.2 million, recognizing a net gain on sale of $34.9 million[3] - The company redeemed the remaining 68,000 Series A preferred units for $68.0 million, simplifying the balance sheet and eliminating the risk of dilutive common stock issuance[3] - Total liabilities decreased to $181,095,000 in 2025 from $273,091,000 in 2024, a reduction of about 33.8%[19] - The Company’s total assets decreased to $719,065,000 in 2025 from $869,648,000 in 2024, a decline of about 17.3%[19] Liquidity - As of December 31, 2025, the company had access to liquidity of $172.9 million, consisting of $9.3 million in cash and $163.6 million in undrawn credit facilities[10] - Cash and cash equivalents significantly dropped to $9,293,000 in 2025 from $78,441,000 in 2024, a decline of approximately 88.2%[19] Dividends - A quarterly dividend was raised by 50% to $0.09 per share, with an annualized dividend of $0.36 per share[8] - Dividends declared per common share dropped to $0.44 in 2025 from $1.39 in 2024, a decrease of about 68.3%[19] Operational Metrics - The Company presents AFFO and AFFO per share, fully diluted, as non-GAAP measures to provide a more accurate reflection of operational performance compared to FFO[29] - AFFO per share, fully diluted is considered a supplemental metric to GAAP earnings per share, offering insights into potential shares outstanding at a specific time[29] - EBITDAre is calculated as net income excluding interest expense, income tax, depreciation, and amortization, and is a key financial measure for evaluating operating performance[31] - Adjusted EBITDAre is derived from EBITDAre by adjusting for stock-based compensation, acquisition costs, and severance expenses, providing additional insights into ongoing operating performance[32] - Net Operating Income (NOI) is calculated as total operating revenues minus property operating expenses and cost of goods sold, reflecting the performance associated with owning and leasing farmland real estate[34] Future Outlook - The company plans to continue delivering attractive risk-adjusted total returns through disciplined capital management and high-quality assets in 2026[2]

Core Viewpoint - Farmland Partners Inc. has announced the date for its fourth quarter and fiscal year 2025 earnings release and conference call, scheduled for February 18 and 19, 2026, respectively [1] Group 1: Earnings Release and Conference Call - The financial results for the fourth quarter and year ended December 31, 2025, will be released after 5 p.m. Eastern Time on February 18, 2026 [1] - A conference call to discuss the financial results will take place on February 19, 2026, at 11:00 a.m. Eastern Time [1] - The conference call can be accessed by dialing 1-800-715-9871 with conference ID 8436455, and will also be available via a live webcast on the company's Investor Relations website [1] Group 2: Company Overview - Farmland Partners Inc. is an internally managed real estate company focused on acquiring high-quality North American farmland and providing loans to landowners and farmers [1] - As of December 31, 2025, the company owned 71,600 acres across 11 states, including Arkansas, California, Colorado, Illinois, Indiana, Louisiana, Missouri, Nebraska, South Carolina, Texas, and West Virginia [1] - The company also owns land and buildings for four agriculture equipment dealerships in Ohio, leased to Ag Pro under the John Deere brand [1]

Core Viewpoint - Farmland Partners Inc. has announced the tax treatment of its 2025 common stock distributions, detailing the dividend payments and their classifications for tax purposes [1]. Group 1: Dividend Treatment - The company declared a total dividend of $0.240000 per share for 2025, with quarterly distributions of $0.060000 per share on the following dates: January 15, April 15, July 15, and October 15 [1]. - The special distribution of $0.20 per share declared on December 15, 2025, is considered a distribution made in 2026 for federal income tax purposes [1][4]. - The special distribution of $1.15 per share declared on December 13, 2024, is considered a distribution made in 2024 for federal income tax purposes [1][4]. Group 2: Tax Reporting - In 2025, there was no "Box 3 Nondividend Distribution" on form 1099-DIV, eliminating the requirement to file Form 8937 [2]. - Stockholders are advised to consult with their tax advisors regarding the specific tax treatment of the distributions received [2]. Group 3: Company Overview - Farmland Partners Inc. is an internally managed real estate company focused on acquiring high-quality North American farmland and providing loans to landowners and farmers [3]. - As of December 31, 2025, the company owned 71,600 acres across 11 states, including Arkansas, California, and Texas [3]. - The company also owns land and buildings for four agriculture equipment dealerships in Ohio, leased to Ag Pro under the John Deere brand [3].